Question

In parallel columns, list the accounts that would be debited and credited for each of the following unrelated transactions:

Answer 1

Answer:

1) Acquired cash from the issue of common stock:

Debit; Cash

Credit; Common stock

2) Provided services for cash:

Debit; Cash

Credit; Service revenue

3) Paid cash for salaries expense:

Debit; Salaries expense

Credit; Cash

4) Purchased supplies for cash:

Debit; Supplies

Credit; Cash

5) Paid in advance for two-year lease on office space:

Debit; Office space (prepayment)

Credit; Cash

6) Provided services on account:

Debit; Service expense

Credit; Account payable

7) Recognized expense for prepaid rent that had been used up by the end of the accounting period:

Debit; Rent expense

Credit; Prepaid rent

8) Recorded accrued salaries at the end of the accounting period:

Debit; Salaries expense

Credit; Salaries payable