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    Determine increases and decreases to accounts based on type of transaction

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    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 ...

    Solution Summary

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