Question

Review the transactions and determine the accounts, the account types (use assets, liabilities, common stock, dividends, revenue, and expenses), if they increase/decrease and if they are DR/CR. List accounts in order they would be in the journal entry. Purchased equipment on account Account #1 Account Type Increase/Decrease Debit/Credit Account #2 Account Type Increase/Decrease Debit/Credit Paid cash for salaries Account #1 Account Type Increase/Decrease Debit/Credit

Answer 1

Review Purchased Equipment on Account Account #1 Equipment Account #2 Accounts Payable Account Type Increase / Decrease Debit/Credit Asset Increase Debit Account Type Increase / Decrease Debit/Credit Liabilities Increase Credit Journal Enteries Date Particulars Debit in $ Credit in $ Nov-03 Office Supplies a/c Dr. 8000 To Accounts Payable 8000 (Office Supplies on account) Dr. 7000 Paid Cash for Salaries Nov-04 Repairs Expense a/c To Cash (Repairs expense paid) 7000 Nov-05 9000 Account #1 Salaries Expense Account #2 Cash Account Type Increase / Decrease Debit/Credit Expense Increase Debit Account Type Increase / Decrease Debit/Credit Asset Decrease Credit Cash a/c Dr. To Accounts Receivable (Cash from debtors) 9000 Paid Cash on Account Dr. 7000 Nov-05 Accounts Payable a/c To Cash (Creditors paid) 7000 Account #1 Accounts Payable Account #2 Account Type Increase/Decrease Debit/Credit Liabilities Decrease Debit Account Type Increase / Decrease Debit/Credit Asset Decrease Credit 5000 Cash Nov-05 Salaries Expense a/c Dr. To Cash (Salary paid) 5000 Provided Services on Account Account #1 Accounts Receivable Account #2 Service Revenue Account Type Increase / Decrease Debit/Credit Asset Increase Debit Account Type Increase / Decrease Debit/Credit Revenue Increase Credit Prepaid for Rent Account #1 Prepaid Rent Account #2 Cash Account Type Increase / Decrease Debit/Credit Asset Increase Debit Account Type Increase / Decrease Debit/Credit Asset Decrease Credit