Week 2 Assignment:

1. Determine the account type (Asset, Liability, or Owner’s Equity) for each of the account names listed below. Identify the normal balance (debit or credit) for the account.
2. Analyze the given transactions using the T-account template created in Week 1. You will need to establish a T-account for each account required.
3. After you have analyzed the transactions, total each account and prove the assets = liabilities + owner’s equity by totaling the balances from each account and checking that the equation balances.
For example: Assume Assets = 10,000; Liabilities = 3,000; Owner’s Equity =7,000. Does 10,000=3,000+7,000? Yes. You know you have completed your analysis correctly!

Submit your answers for Question 1 in a Word document and your T-account analysis in your Excel template. Upload both files to the Assignment 2 Drop Box.

Accounts to use for this assignment:
• Accounts Receivable- assets- debit
• Accounts Payable
• Cash
• Computer Equipment
• Fees Income
• Office Equipment
• Prepaid Rent
• Utilities Expense
• Rent Expense
• Your Name, Capital
• Your Name, Drawing

November Business Transactions:

3rd: You visit your local bank and withdraw $50,000 from your personal savings account and deposit it into a new bank account in the name of the business.

5th: Realizing some of your computer equipment is out-of-date; you purchase $4,000 of new equipment, issuing check 1001, to Digital Warehouse, Inc.

6th: With all of this great equipment, you’ve overlooked an important business need: a location! You find the perfect small office space in a great part of town that rents for $1,000 per month. When you meet the property manager, she requests not only the rent for November, but also rent for the next 3 months. Issue check 1002 to Property Inc.

10th: With such a fantastic office space, you need some office