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3 years ago

For each item below, indicate whether a debit or credit applies.

Business

1 answer:

Mandarinka [93]3 years ago

8 0

Answer and Explanation:

The indication of each transaction is as follows

a. Note payable contains credit balance so if there is decrease so it would be shown on the debit side

b. Dividend contains debit balance so if there is an increase so it would be shown on the debit side

c. Common stock contains credit balance so if there is an increase so it would be shown on the credit side

d. Unearned rent revenue contains credit balance so if there is an increase so it would be shown on the credit side

e. Interest payable contains credit balance so if there is decrease so it would be shown on the debit side

f. Prepaid insurance contains debit balance so if there is an increase so it would be shown on the debit side

g. Expense contains debit balance so if there is an decrease so it would be shown on the credit side

h. Supplies contains debit balance so if there is an decrease so it would be shown on the credit side

i. Revenue contains credit balance so if there is an increase so it would be shown on the credit side

j. Account receivable contains debit balance so if there is an decrease so it would be shown on the credit side

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3 years ago

Read 2 more answers

In its first year of operations, Sunland Company recognized $30,000 in service revenue, $8,100 of which was on account and still

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Answer:

A. Cash basis $5,750

Accrual basis $11,400

B. Accrual basis

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A. Calculation for the first year’s net earnings under the cash basis of accounting, and accrual basis of accounting

Cash basis Accrual basis

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3 years ago