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Debit and Credit

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

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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 ...

Solution Summary

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