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.
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Solution Preview
1)a - More cash is gained, therefore debit cash.
2)a - More capital is owed to the owner, therefore capital ...
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