Miley Block Is a Building Consultant

question 197

Essay

Miley Block is a building consultant. Shown below are (a) several accounts in her ledger with each account preceded by an identification number, and (b) several transactions completed by Block. Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction.
$\begin{array}{l}\begin{array} { l | l | r | l } { \text { 1. } } & \text { Accounts Payable } & \text { 7. } & \text { Telephone Expense } \\\hline \text { 2. } & \text { Accounts Receivable } & 8 . & \text { Unearned Revenue } \\\hline 3 . & \text { Cash } & 9 . & \text { Miley Block, Capital } \\\hline 4 . & \text { Consulting Fees Earned } & 10 . & \text { Miley Block, Withdrawals } \\\hline 5 . & \text { Office Supplies } & 11 . & \text { Insurance Expense } \\\hline 6 . & \text { Office Supplies Expense } & 12 . & \text { Prepaid Insurance }\end{array}\\\begin{array} { l | l | c | l } & & \text { Debit } & \text { Credit } \\\hline & \text { Example: } & 2 & 4 \\\hline & \begin{array} { l } \text { Completed consulting work for a client } \\\text { who will pay at a later date. }\end{array} & & \\\hline \text { A. } & \begin{array} { l } \text { Received cash in advance from a } \\\text { customer for designing a building }\end{array} & & \\\hline \text { B. } & \text { Purchased office supplies on credit. } & & \\\hline \text { C. } & \text { Paid for the supplies purchased in B. } & & \\\hline\end{array}\end{array}$
$$\begin{array} { l | l | l | l } \hline \text { D. } & \begin{array} { l } \text { Received the telephone bill of the } \\\text { business and immediately paid it. }\end{array} &\quad\quad &\quad\quad \\\hline \text { E. } & \text { Paid for a 3-year insurance policy } & &\end{array}$$

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Definitions:

Foreign Exchange Market

A global decentralized or over-the-counter market for trading currencies, facilitating international trade and investment.

Peg

Fixing the exchange rate of a currency by linking it to another currency or basket of currencies.

Fixed Exchange Rates

A currency system where the value of a country's currency is pegged to another currency, a basket of currencies, or a commodity like gold, minimizing fluctuations in exchange rates.

International Monetary Reserves

International monetary reserves are assets held by central banks or monetary authorities in various forms, such as foreign currencies, gold, and Special Drawing Rights (SDRs), used to back the currency and support economic policies.