If a two-column (all-purpose) general journal, a purchases journal, and a cash payments journal are used, indicatethe journal in which each of the following transactions should be recorded: (a) Payment of rent. (b) Purchase of supplies on account. (c) Purchase of computer on account. (d) Purchase of supplies for cash. (e) Advance payment of a one-year fire insurance policy on the office. (f) Adjustment to record accrued salaries at the end of the period. (g) Adjustment to record depreciation at the end of the month. (h) Payment of an account payable.
Question 2
Elsie owns a small business. At the end of the month, Elsie needed to make adjusting entries to prepare statements on the accrual basis.
Which two of the following six possibilities occurred as a result of each of the following adjustments - an asset increased, an asset decreased, a liability increased, a liability decreased, equity increased, or equity decreased:
a. An accrual for salaries that were due to an employee, but were not paid
b. An adjustment for depreciation on Elsie's store fixtures
c. An adjustment for the expiration of prepaid insurance
d. An accrual for interest earned on a certificate of deposit that had not matured
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