Ledbeter Gibbs_Accounting 3.02 - Question 1 Step 1 Analysis The accounts affected in the transaction are Cash Account Capital Account Cash is an Asset

Ledbeter Gibbs_Accounting 3.02 - Question 1 Step 1 Analysis...

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Question 1 Step 1: Analysis The accounts affected in the transaction are: Cash Account Capital Account Cash is an Asset account Captial is an Owner's Equity account Cash is decreased by 5,000 Capital is increased by $5,000 Step 2: Debit - Credit Rule: Decrease in a Cash account is recorded as credit. Crebit the cash account for $5,000 Increase in A Capital account is recorded as debit. Debit the Capital for $5,000. Step 3: Prepare a T Account Cash Capital 5,000 5,000 Date Account Title Debit Credit 1-Jan Cash 5,000 Capital 5,000 Postings: Date Description Post. Ref Debit Credit 2005 Jan 1 Cash In Bank 5,000 5,000 Rex's Capital Question 2 Step 1: Analysis The accounts affected in the transaction are: Cash Account Office Furniture Account Cash is an Asset account Office Furniture is an Asset account Cash is decreased by $400 Office Furniture is increased by $400 Step 2: Debit - Credit Rule: Increase in a Cash Account is recorded ad a debit. Debit the Cash Account for $2,000. Increase in A Office Furniture account is recorded as credit. Credit the Office Furniture Account for $2, Memorandum 10
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Step 3: Prepare a T Account Cash Office Furniture 2,000 2,000 Date Account Title Debit Credit 3-Jan Cash 2,000 Office Furniture 2,000 check No. 501 Postings: Date Description Post. Ref Debit Credit 2005 Jan 3 Cash In Bank 2,000 2,000 Office Furniture Question 3 Step 1: Analysis The accounts affected in the transaction are: Cash Account
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  • Summer '17
  • Accounting, 1966, Generally Accepted Accounting Principles, January, office furniture

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