Question

Answer all the items. To submit your exam you can either upload the file or upload images of the pages with the handwritten answers (take photos or scan them).

1. T / F In double entry accounting, recorded financial events/transactions are self-balancing with debits equaling credits.

2. Fill out the basic accounting equation:

___________________ = _________________________ + ____________________

3. Make the accounting entries for payment of medical supplies of $250.

ACCT Debit Credit

______________ ___________ ___________

______________ ___________ ___________

4. Make the accounting entries for receipt of payment for an outpatient visit. Fee is $75.

ACCT Debit Credit

______________ ___________ ___________

______________ ___________ ___________

______________ ___________ ___________

Answer 1

1: True

In double entry system of accounting, debit equal credits and hence the financial transactions are self-balancing. The trial balance must tally.

2: Assets = Liabilities+ equity

The basic accounting equation is that all assets are financed by either liabilities or by equity.

3: ACCT                       Debit                    Credit

Medical supplies        250

Cash/bank                                                    250

(Being medical supplies purchased for cash)

4: ACCT                       Debit                    Credit

Cash/ Bank                 75

Outpatient fee                                            75

(Being Outpatient fee received as revenue)