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WhatsApp Image 2019-07-29 at 5.03.33 PM.jpeg - Chapter 02...

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Unformatted text preview: Chapter 02 - Investing and Financing Decisions and the Accounting System Debit first, then credit HANDOUT 2 - 3 THE DEBIT/CREDIT FRAMEWORK Analyze each of the following transactions of World Wide Webster and prepare the journal entry required to record the related transaction. (a) Stockholder invests $10,000 into the business in exchange for 10,000 shares of $1 par value common stock. Debit and credit the accounts affected (a Cash \+A) 10,000 apict Common Stock (+ SE) 10,010 Ensure the equation still balances and debits = credits Assets Liabilities + Stockholders' Equity LIDODD (b) Borrow $15,000 signing a note payable to the bank that is due in three months. AC Debit and credit the accounts affected (b ) Cash + A In $15060 2 Note payable (+ L ) $ 15, 000 Ensure the equation still balances and debits = credits Assets Liabilities + Stockholders Equity 5: 15, 000 $15,000 (c) Acquire a $15,000 truck and $5,000 werth of equipment. Debit and credit the accounts affected ( c) Equipment + A ) $20000 Cash -A $20 ODD Ensure the equation still balances and debits = credits Assets Liabilities + Stockholders Equity 320010 5-20OUD 2-9 C 2017 by Mcgraw-Hill Education. This is proprietary material solely for authorized instructor use, Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Con first cla...
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  • Fall '12
  • MayYueZhang
  • Double-entry bookkeeping system

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