Assets = Liabilities

49,584 = 1,950
49,584
Accounts Debit (Credit) Accounts Beg Trial Entries
Balance

a. Supplies 585 Cash 50,000 (1,001)

Accounts Payable (585) Accounts Receivable 0
Supplies 0 585
b. Accounts Payable 585 Accounts Payable 0 (1,950)
Cash (585) Owner Capital 0
Revenue or income (50,000)
c. Auto Expense 416 Wages Expense 0
Accounts Payable (416) Utilities Expense 0
Meals and Ent. Expense 0 1,950
d. Meals and Ent. Expense 1,950 Auto Expense 0 416
Accounts Payable (1,950) Total Debits - Total (credits) 0 0
Net Income (50,000) 2,366
e. Accounts Payable 416
Cash (416)
Activity
a. Purchased supplies on
585
account
b. Paid for supplies
purchases in the past on 585
account
c. Purchased auto service on
416
account
d. Purchased business meals
1,950
on account
e. Paid for auto service
which was purchased on 416
account in the past
 + Owner's Equity
+ 47,634
49,584
End Trial
Balance What was effect on asset liability and owner's equity?
48,999 Assets = Liabilities + Owner's Equity
0 a. Increase = Increase + None
585
(1,950) b. Decrease = Decrease + None
0
(50,000) c. None = Increase + Decrease
0
0 d. None = Increase + Decrease
1,950
416 e. Decrease = Decrease + None
0
(47,634) Are expenses recognized when cash is paid? No

Are expenses recognized assets have been used Yes

or liabilities incurred in order to generate
revenue?
 Assets = Liabilities
50,000 = 0
50,000
Accounts Debit (Credit) Accounts Beg Trial Entries
Balance

a. Cash 50,000
Accounts Receivable 0
Supplies 0
b. Accounts Payable 0
Owner Capital 0
Revenue or income (50,000)
c. Wages Expense 0
Utilities Expense 0
Meals and Ent. Expense 0
d. Auto Expense 0
Total Debits - Total (credits) 0 0
Net Income (50,000) 0
e.

Activity
a. Purchased supplies on
585
account
b. Paid for supplies
purchases in the past on 585
account
c. Purchased auto service on
416
account
d. Purchased business meals
1,950
on account
e. Paid for auto service
which was purchased on 416
account in the past
 + Owner's Equity
+ 50,000
50,000
End Trial
Balance What was effect on asset liability and owner's equity?
50,000 Assets = Liabilities + Owner's Equity
0 a. = +
0
0 b. = +
0
(50,000) c. = +
0
0 d. = +
0
0 e. = +
0
(50,000) Are expenses recognized when cash is paid?

Are expenses recognized assets have been used

or liabilities incurred in order to generate
revenue?