Question

Identify whether a debit or credit yields the indicated change for each of the following accounts %

Answer 1

Answer:

a. To increase Prepaid Rent  ⇒ DEBIT, since this is an asset account, in order to increase it you must debit it.

b. To decrease Prepaid Parking    ⇒ CREDIT, since this is an asset account, in order to decrease it you must credit it.  

c. To increase Repairs Expense   ⇒ DEBIT, since this is an expense account, in order to increase it you must debit it.

d. To increase Commission Revenue   ⇒ CREDIT, since this is a revenue account, in order to increase it you must credit it.

e. To decrease Rent Payable ⇒ DEBIT, since this is a liability account, in order to decrease it you must debit it.

f. To decrease Supplies    ⇒ CREDIT, since this is an asset account, in order to decrease it you must credit it.

g. To increase Unearned Revenue  ⇒ CREDIT, since this is a liability account, in order to increase it you must credit it.

h. To decrease Equipment   ⇒ DEBIT, since this is an asset account, in order to increase it you must debit it.

i. To increase Retained Earnings   ⇒ CREDIT, since this is an equity account, in order to increase it you must credit it.

j. To increase Store Supplies  ⇒ DEBIT, since this is an asset account, in order to increase it you must debit it.