Question

20. For each transaction, identify which account is debited and which account is credited. Use proper account titles (Cash, Accounts Receivable, etc.). Debit Credit Transaction Received a bill for utilities to be paid next month Performed services on account Paid employees' salaries Paid cash for a 6-month insurance policy, with coverage starting next month Paid dividends to stockholders Borrowed cash and signed a promissory note Used up warehouse supplies Received cash from a customer to pay on their account Received cash for services to be performed in the future Paid rent for current month camnany has the following transactions:

Answer 1

	Debit	Credit
1	Utilities expense
		Utilities payable
	(expense incurred for utilities recognized and liability created for cash to be payable next month)
2	Accounts receivable
		Services revenue
	(income recognized and debtors debited for cash not yet received for services performed)
3	Salaries
		Cash
	(salary expense recognized, cash paid for salaries reduced cash balance)
4	Prepaid insurance
		Cash
	(coverage will start next month so insurance will be treated as prepaid)
5	Dividend expense
		Cash
	(cash balance reduced and dividend expense recognized)
6	Cash
		Notes Payable
	(borrowed cash will increase cash balance by debiting it and liability for notes created)
7	Supplies expense
		Supplies
	(supplies used will be recognized as expense and therby reducing supplies asset balance)
8	Cash
		Accounts receivable
	(cash increased for amount received from debtors)
9	Cash
		Accrued services
	( Cash received as advance will increase liability as services are yet to be performed)
10	Rent
		Cash
	(rent paid for current month recognized as expense and cash balance reduced)