Question

acc

Read the requirements. July 10: Purchased office supplies on account, $1,900. Accounts Date Jul. 10Office Supplies Accounts Payable July 19: Borrowed $20,000 from the bank for business use. Date Accounts Jul. 19 July 22: Paid $1,800 on account Date Accounts Choose from any list or enter any number in the input fields and then contin

Answer 1

July 10: This increases assets as office supplies; therefore, it is debited. At the same time liability created since the required payment is not made; therefore, accounts payable is credited.

Journal

Date	Accounts title and explanation	Ref.	Debit	Credit
10/7	Office supplies		$1,900
	Accounts payable			$1,900
	To record on-account purchase

July 19: This increases assets as cash; therefore, it is debited. It happens because of loan taken from bank; therefore, it is a liability and credited.

Journal

Date	Accounts title and explanation	Ref.	Debit	Credit
19/7	Cash		$20,000
	Loan from bank			$20,000
	To record money borrowed from bank

July 22: It decreases cash since the payment is made; therefore, it is credited. The corresponding debit would be sundries, because the holder is not specific.

Journal

Date	Accounts title and explanation	Ref.	Debit	Credit
22/7	Sundries		$1,800
	Cash			$1,800
	To record on account payment