Question

You are to indicate the proper accounts to be debited and credited for the following transactions by writing the account number(s) in the appropriate column.
1 Cash 8 Common Stock
2 Accounts Receivable 9 Retained Earnings
3 Paper Supplies 10 Dividends
4 Copy Machines 11 Service Revenue
5 Accounts Payable 12 Advertising Expense
6 Note Payable 13 Rent Expense
7 Unearned Revenue


Number(s) of account(s) debited Number(s) of account(s) credited

1. Stockholders invest $90,000 cash to start the business.
2. Purchased three digital copy machines for $400,000, paying $100,000 cash and signing a 5-year, 6% note for the remainder.
3. Purchased $5,000 paper supplies on credit.
4. Cash received for photocopy services amounted to $7,000.
5. Paid $500 cash for radio advertising.
6. Paid $800 on account for paper supplies purchased in transaction 3.
7. Dividends of $1,500 were paid to stockholders.
8. Paid $1,200 cash for rent for the current month.
9. Received $2,000 cash advance from a customer for future copying.
10. Billed a customer for $450 for photocopy services completed.

Answer 1

Answer:

since there are no columns, I will write it down:

1. Stockholders invest $90,000 cash to start the business.

Cash increases by 90,000

Common stock increases by 90,000

2. Purchased three digital copy machines for $400,000, paying $100,000 cash and signing a 5-year, 6% note for the remainder.

Copy machines increases by 400,000

Cash decreases by 100,000

Notes payable increases by 300,000

3. Purchased $5,000 paper supplies on credit.

Supplies increases by 5,000

Accounts payable increases by 5,000

4. Cash received for photocopy services amounted to $7,000.

Cash increases by 7,000

Service revenue increases by 7,000

5. Paid $500 cash for radio advertising.

Advertising expense increases by 500

Cash decreases by 500

6. Paid $800 on account for paper supplies purchased in transaction 3.

Cash decreases by 800

Accounts payable decreases by 800

7. Dividends of $1,500 were paid to stockholders.

Dividends increase by 1,500

Cash decreases by 1,500

8. Paid $1,200 cash for rent for the current month.

Rent expenses increases by 1,200

Cash decreases by 1,200

9. Received $2,000 cash advance from a customer for future copying.

Cash increases by 2,000

Unearned revenue increases by 2,000

10. Billed a customer for $450 for photocopy services completed

Accounts receivable increases by 450

Service revenue increases by 450