Purchase Solution

Debit and Credit

Not what you're looking for?

Ask Custom Question

Accounts given: (a) cash (b) accounts receivable (c) supplies (d)equipment (e) accounts payable (f) note payable (g) capital (h) withdrawals (i) service revenue (j)utilities expense (k) salary expense.

transactions given:

(A) purchased equipment for cash.

(B) performed services for cash.

(c) owner invests cash into business.

(d) purchased equipmernt by issuing a note payable

(e) purchased supplies for cash

(f) purchased supplies on account

(g) performed services on account

(h) received cash on account

(i) paid a creditor on account

(j) paid salary of employess for the current period

Purchase this Solution
Solution Summary

The solution explains which accounts would be debited or credited for the given transactions.

Solution Preview

We debit when assets increase and credit when asstes decrease. We credit when liabilities /equity increase and debit when decrease. Increase in revenue is credit and increase in expense is debit

(A) purchased equipment for cash.

The two asset accounts are equipmetn and cash. Equipment is increasing and cash is decreasing.
Equipment debit
Cash Credit

(B) performed services for cash.

The accounts are service revenue and cash. Service revenue is ...

Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

View More Free Quizzes
Related BrainMass Solutions

  • Account Balances

    The debit or credit for increase or decrease works in the following ways Assets, Drawing (Contra Equity) and Expenses increase with debit and decrease with credit Liabilities, Equity and Revenue increase with credit and decrease with debit Using

  • Account 'normal' balances; Increase/decrease decisions

    Asset and expenses have normal debit balances and increase with a debit, decrease with a credit Liabilities, equity and revenue have normal credit balances and increase with a credit, decrease with a debit Office supplies, normal debit Repair revenue

  • Debit and Credit and Normal Balance

    215089 Debit and Credit and Normal Balance Also see attached file In columns (a) and (b) indicate whether the change in the account would be recorded as a debit or a credit and whether the normal balance of the account is a debit or a credit.

  • Debits, Credits, and Retained Earnings

    Advertising Expense Debit 7. Rent Revenue Credit For assets, dividends and expenses debit increases the balance and credit decreases For liabilities, equity and revenue credit increases the balance and debit decreases 1.

  • Revenue recognition and other practice exam questions

    - Debit Cash and Debit Rent Expense. - Credit Cash and Credit Rent Expense. - ***Debit Rent Expense and Credit Cash. - Credit Rent Expense and Debit Cash. 5.

  • Multiple Choice: Governmental Accounting

    Debit encumbrances and credit reserve for encumbrances b. Debit reserve for encumbrances and credit encumbrances c. Debit expenditures and credit encumbrances d. Debit expenditures and credit vouchers payable 2.

  • Identify normal debit & credit balances to list of accounts

    264587 Identifying normal debit and credit balances as applied to a list of accounts Indicate whether each of the following accounts normally has a debit or cresit balance.

  • Debits and credits plus normal balance for accounts

    Common Stock decreases with a debit; increases with a credit and has a normal credit balance. 6. Dividends increases with a debit; decreases with a credit and has a normal debit balance.

  • Financial Accounting Multiple Choice Questions

    Debit to Purchases and a credit to Cash b. Debit to Merchandise Inventory and a credit to Accounts Payable c. Debit to Merchandise Inventory and a credit to Cash d.

  • the following accounts would normally carry a debit or a cre

    Debit to increase (debit from gross revenues) the following accounts would normally carry a debit or a credit balance to increase the account:

View More Related Solutions