Madison Enterprises purchased $500 of supplies with cash. What of the following is true? A. an...
Madison Enterprises purchased $500 of supplies with cash. What of the following is true?
| A. |
an equity item would be credited and an expense account would be debited |
|
| B. |
an expense account would be debited and an asset account would be credited |
|
| C. |
an asset account would be debited and an expense account would be credited |
|
| D. |
an asset account would be debited and an asset account would be credited |
Homework Answers
Given transaction - $500 of supplies are purchased with cash.
The given transaction will have the following effects:
(i) Assets will increase in the form of supplies.
(ii) Assets will decrease in the form of cash.
Thus, an asset account (supplies) would be debited and an asset account (cash) would be credited.
Correct option is D.
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Madison Enterprises purchased $500 of supplies with cash. What
of the following is true?
A.
an...
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9
Purchased supplies on account for $500.
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3 Exercise 2-2 Selected transactions for L. Takemoto, an interior decorating firm, in its first month...
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Selected transactions for L. Takemoto, an interior decorating
firm, in its first month of business, are as follows.
Jan. 2
Invested $15,000 cash in the business in exchange for common
stock.
3
Purchased used car for $8,200 cash for use in the
business.
9
Purchased supplies on account for $500.
11
Billed customers $1,800 for services performed.
16
Paid $200 cash for advertising.
20
Received $780 cash from customers billed on January 11.
23
Paid creditor $300 cash on balance...
Selected transactions for Allie Mane, an interior
decorator, in her first month of business, are as
follows:
Jan.
2 Invested $10,000 cash in business.
3 Purchased used car for $3,000 cash for use in business.
4 Purchased a one-year insurance policy for $1,200.
9 Purchased supplies on account for $500.
18 Paid creditor $300 cash on balance owed.
28 Withdrew $1,000 cash for personal use by owner.
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7 Wunderkind Photography entered into the following transactions during February 2019. 1. Stockholders invested $5,000 in the business. 2. Bought photography equipment for a cash payment of $1,000. 3. Bought more photography equipment by signing a $500 note payable. 4. Performed photography services for $400 cash. 5. Performed photography services, and billed the customer $900 on account 6. Collected $900 from the customer in item 5. 7. Paid for February developing and printing, $150. 8. Advertised the business in the...
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Revenue, Accounts Receivable, Service Revenue.
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3 Exercise 2-2 Selected transactions for L. Takemoto, an interior decorating firm, in its first month of business, are as follows. Jan. 2 Stockholders invested $15,000 cash in the business in exchange for common stock. Purchased used car for $8,200 cash for use in the business. 9 Purchased supplies on account for $500. Billed customers $1,800 for services performed. Paid $200 cash for advertising. Received $780 cash from customers billed on January 11. 23 Paid creditor $300 cash on balance...
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