Question

For each of the transactions of Ardon Peralta & Company, a landscape design firm, select the appropriate response to indicate the debits and the credits to be made.

Transactions Account Effects 1. Purchased supplies on account. Debit an asset, Credit a liability 2. Paid interest on a bank loan. 3. The business paid the stockholders dividend. 4. Returned some defective supplies and received a reduction in the amount owed. 5. Made a payment to repay bank loan. 6. Received an invoice for supplies used 7. Received payment in advance from client for work to be done next month. 8. Paid employee's Salary 9. Peralta contributed additional capital to the business Debit an asset, Credit a liability Debit and asset, Credit common stock Debit a liability, Credit an asset Debit and expense, Credit an asset Debit an expense, Credit a liability Previous Save Answers Debit dividends, Credit an asset

Answer 1

Classification

	Transaction	Accounts effects
1.	Purchase supplies on account	Debit an asset, credit a liability
2.	Paid interest on a bank loan	Debit an expense, credit an asset
3	The business paid the stockholders dividend	Debit dividends, credit an asset
4	Returned some defective supplies and received a reduction in the amount owed	Debit an liability, credit an asset
5	Made a payment to repay bank loan	Debit liability and credit asset
6	Received an invoice for supplies used	Debit expense and credit an asset
7	Received payment in advance from client for work to be done next month	debit asset and credit liability
8	Paid employee salary	Debit expense and credit asset
9	Peralta contributed additional capital to the business	Debit asset and credit Common Stock