Question

Hokies uses the following accounts:

Answer 1

Answer:

Explanation:

The indications are shown below:

1. Pay a cash dividend = dividend is debited and cash is credited

2. Pay rent in advance for the next three months = Prepaid account is debited and cash is credited

3. Provide services to customers on account = Account receivable is debited and service revenue is credited

4. Purchase office supplies on account = Supplies account is debited and account payable is credited

5. Pay salaries for the current month = Salaries expense is debited and cash is credited

6. Issue common stock in exchange for cash. = cash is debited and common stock is credited

7. Collect cash from customers for services provided in (3) above. = Cash is debited and account relevance is credited

8. Borrow cash from the bank and sign a note = Cash is debited and note payable is credited

9. Pay for the current month's utilities = Utilities expense is debited and cash is credited

10. Pay for office supplies purchased in (4) above = Account payable is debited and cash is credited