What is true about a credit and what does it do to the six different account

What is true about a credit and what does it do to

This preview shows page 4 - 6 out of 9 pages.

What is true about a credit and what does it do to the six different account classifications? What are the normal balances of the six different account classifications? Place an “” under the appropriate column. Transaction AnalysisThe following table shows the chart of accounts used by a computer consultant.1.Accounts Payable6.Insurance Expense11.Salary Expense2.Accounts Receivable7.Owner, Capital12.Supplies3.Cash8.Owner, Withdrawals13.Supplies Expense 9.Prepaid Insurance 15.Utilities ExpenseRequired: The owner completed several transactions during the period. Indicate the accounts that would be debited and credited to record each transaction in a general journal by placing the proper account numbers or names to the right of each transaction (as indicated in the two examples). No. Transaction Debit Credit Ex. Purchased equipment for cash. 4 Equipment 3 Cash
Ex. Received utility bill to be paid next month. 15 Utilities Expense 1 Accounts Payable 1. Owner personally invested cash in the company (cash investment by owner). 3 Cash 7 Owner, Capital 2. Owner invested equipment in the company (noncash investment by owner). 4 Equipment 7 Owner, Capital 2. Purchased supplies for on account (on credit). 12 Supplies 1 Accounts Payable 3. Provided services for cash (performed or rendered consulting services for cash). 3 Cash 5 Fees Earned 4. Paid salaries (payment of salary expense in cash). 11 Salary Expense 3 Cash 5. Provided services on credit (performed services on account). 2 Accounts Receivable 5 Fees Earned 6. Collected amount (or received check) from customer on account. 3 Cash 2 Accounts Receivable 7. Paid creditor on account (partial payment of accounts payable). 1 Accounts Payable 3 Cash 8. Owner withdrew cash for personal use (withdrawal of cash by owner). 8 Owner, Withdrawals 3 Cash 9. Received cash in advance of providing service to customer. 3 Cash 14 Unearned Fees 10. Prepaid insurance for two years. 9 Prepaid Insurance 3 Cash

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture