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Vicki Lake Is a Computer Consultant

question 38

Essay

Vicki Lake is a computer consultant. Shown below are (a) several accounts in her ledger with each account preceded by an identification number and (b) several transactions completed by Lake. Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction.
$\begin{array}{|l|l|l|l|}\hline \text { 1. } & \text { Accounts Payable } & 7 . & \text { Telephone Expense } \\\hline \text { 2. } & \text { Accounts Receivable } & 8 . & \text { Unearned Consulting Fees } \\\hline \text { 3. } & \text { Cash } & 9 . & \text { Common Stock } \\\hline 4 . & \text { Consulting Fees Earned } & 10 . & \text { Dividends } \\\hline \text { 5. } & \text { Office Supplies } & 11 . & \text { Insurance Expense } \\\hline 6 . & \text { Office Supplies Expense } & 12 . & \text { Prepaid Insurance } \\\hline\end{array}$ $Vicki Lake is a computer consultant. Shown below are (a) several accounts in her ledger with each account preceded by an identification number and (b) several transactions completed by Lake. Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction. \begin{array}{|l|l|l|l|} \hline \text { 1. } & \text { Accounts Payable } & 7 . & \text { Telephone Expense } \\ \hline \text { 2. } & \text { Accounts Receivable } & 8 . & \text { Unearned Consulting Fees } \\ \hline \text { 3. } & \text { Cash } & 9 . & \text { Common Stock } \\ \hline 4 . & \text { Consulting Fees Earned } & 10 . & \text { Dividends } \\ \hline \text { 5. } & \text { Office Supplies } & 11 . & \text { Insurance Expense } \\ \hline 6 . & \text { Office Supplies Expense } & 12 . & \text { Prepaid Insurance } \\ \hline \end{array}$

Definitions:

Stock Option Plan

A program established by a company that grants employees the right to purchase the company's stock at a predetermined price after a certain period of time.

Common Stock Subscribed

An agreement by investors to purchase common stock from a company, indicating the investors' commitment to buy shares at a future date.

Subscriptions Receivable

Amounts owed by customers for subscription services that have been billed but not yet paid.

Stock Warrants

Certificates granting the holder the right to purchase shares of stock at a specified price before a set expiration date.