Question

instructions: 1. using the following account titles, write the accounts affected by each transaction in column 2. cash supplies prepaid insurance accounts payable—miller supplies jeff dixon, capital jeff dixon, drawing sales advertising expense miscellaneous expense rent expense repair expense utilities expense 2. for each account title, write the account classification in column 3. 3. for each account title, place a check mark in either column 4 or 5 to indicate the normal balance. 4. for each account title, place a check mark in either column 6 or 7 to indicate if the account is increased (+) or decreased (-) by this transaction. 5. for each account title, place a check mark in either column 8 or 9 to indicate if the account is changed by a debit or a credit. transactions 1. received cash from owner as an investment. 2. paid cash for supplies. 3. paid cash for insurance. 4. bought supplies on account from miller supplies. 5. paid cash on account to miller supplies. 6. paid cash for rent. 7. paid cash for repairs. 8. paid cash for miscellaneous expense. 9. paid cash for telephone bill (utilities expense). (the form for drill 2 - d1 is on the next page.)

Explanation:

Step1: Analyze transaction 1

Received cash from owner as an investment. The accounts affected are Cash (asset) and Jeff Dixon, Capital (equity). Cash increases (debit) and Jeff Dixon, Capital increases (credit).

Step2: Analyze transaction 2

Paid cash for supplies. Cash (asset) decreases (credit) and Supplies (asset) increases (debit).

Step3: Analyze transaction 3

Paid cash for insurance. Cash (asset) decreases (credit) and Prepaid Insurance (asset) increases (debit).

Step4: Analyze transaction 4

Bought supplies on account from Miller Supplies. Supplies (asset) increases (debit) and Accounts Payable—Miller Supplies (liability) increases (credit).

Step5: Analyze transaction 5

Paid cash on account to Miller Supplies. Cash (asset) decreases (credit) and Accounts Payable—Miller Supplies (liability) decreases (debit).

Step6: Analyze transaction 6

Paid cash for rent. Cash (asset) decreases (credit) and Rent Expense (expense) increases (debit).

Step7: Analyze transaction 7

Paid cash for repairs. Cash (asset) decreases (credit) and Repair Expense (expense) increases (debit).

Step8: Analyze transaction 8

Paid cash for miscellaneous expense. Cash (asset) decreases (credit) and Miscellaneous Expense (expense) increases (debit).

Step9: Analyze transaction 9

Paid cash for telephone bill (utilities expense). Cash (asset) decreases (credit) and Utilities Expense (expense) increases (debit).

Answer:

The above - described analysis for each transaction shows the accounts affected, their classifications, normal balances, and the effect of debit/credit on them. A table would be needed to fully complete the drill as per the instructions, with columns filled as per the steps above for each transaction. For example, for transaction 1:

Column 2	Column 3	Column 4 (Normal Balance)	Column 6 (Increase/Decrease)	Column 8 (Debit/Credit)
Jeff Dixon, Capital	Equity	Credit	+	Credit

And so on for the remaining transactions.