Question

QUESTION 1 4 pa Determine whether the normal balance of each account is a debit or credit balance - Dividends - Revenues 1. Debit - Deferred/Unearned revenue 2. Credit - Accounts payable - Expenses QUESTION 2 1.5 pc When a company performs a service but does not receive cash at the time of service, revenue is credited, tell me which account will be debited? O cash accounts payable o accounts receivable dividends

Answer 1

	1)
		Dividend	Debit
		Revenues	Credit
		Deferred Revenue	Credit
		Account Payable	Credit
		Expenses	Debit
	2)	The account receivable account would be debited.
	Journal entry would be
	Date	Account Title	Debit	Credit
		Account Receivables	XXXXXX
		Revenue		XXXXXXX
	3)
	The correct journal entry would be
	Date	Account Title	Debit	Credit
		Supplies	$        800
		Account Payable		$        800
		( to record purchases on account)
	Correct Option: FIRST
	4)	Correct Option: FIRST
		the purchase of inventory on account.
	5)	Accounting Equation
		Assets = Liabilities + Equity
		Correct Option: FOURTH
		The asset is decreased by $2000 there possible scenarios to fulfill accounting equation
		1) Increase in another asset
		2) Decrease in liability
		3) decrease in equity
		Therefore for the given situation decrease in shareholders' equity is correct.
	6)	Correct Option: FIRST
	7)	Correct of account receivable the journal entry would be
	Date	Account Title	Debit	Credit
		Cash	XXX
		Account Receivables		XX
	Cash and account receivables both are the assets hence
	the THIRD option is correct.
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