Explore BrainMass

Determine increases and decreases to accounts based on type of transaction

1)The business received cash:
a)increase Cash account.
b)decrease Cash account.

2)The owner invested cash in the business:
a)increase Capital account.
b)decrease Capital account.

3)The owner invested cash in the business
a)debit Capital account
b)credit Capital account

4)The business received cash from a credit customer:
a)increase Accounts Receivable account.
b)decrease Accounts Receivable account.

5)The business borrowed money from the bank:
a)increase Notes Payable account.
b)decrease Notes Payable account.

6) The business received cash from a cash customer:
a)increase Service Revenue account.
b)decrease Service Revenue account.

Solution Preview

1)a - More cash is gained, therefore debit cash.

2)a - More capital is owed to the owner, therefore capital ...

Solution Summary

The solution gives the answer together with an explantion of the basis for the response.