Question

Apply: Exercise 6 Saved Derrick Wells decided to start a dental practice. The first five transactions for the business follow. 1. Derrick Invested $83,000 cash In the business 2 Pald $23,000 In cash for equlpment. 3. Performed services for cash amounting to $8,300 4. Pald $3,100 In cash for advertising expense. 5. Pald $2,300 In cash for supplies. 1.2 points Skipped (1) Select which two accounts are affected In each of the above transactions. (2&3) Post the above transactions Into the approprlate T accounts Complete this question by entering your answers in the tabs below. Hint Req 1 Req 2 and3 Post the above transactions into the appropriate T accounts. References 2,300 23,000 2,300 Bal. 23,000 Bal. 2,300 8,300 3,100 Bal 3.300 Bal 3.100 Supplies Derrick Wells, Capital 83.000 ((1 83.000 83.000 Bal. Bal. 83.000 Req 1 Req 2 and 3 Anderson Cleaning Service has the following account balances on December 31, 2019 Cash 17,100 Accounts Payable $ 22,3868 Equipment 44,108 Charles Anderson, Capital 38,980 Enter the above balances on the proper side of the T account. Cash Equipment Accounts Payable Charles Anderson, Capital

Answer 1

Golden rules:

1. Assets... (Examples - Cash, Equipment, Supplies)

Debit asset account    – To increase the asset balance

Credit asset account   – To decrease the asset balance

2. Liability...(Examples - Accounts payable, capital accounts, etc...)

Credit liability account   – To increase the liability balance

Debit liability account    – To decrease the liability balance

3. Expenses and Losses.... (Examples - Advertising expenses, etc...)

Debit expense account    – To increase the expense balance

Credit expense account   – To decrease the expense balance

4. Revenues and Gains (Examples - Fees income, etc....)

Credit revenue account   – To increase the revenue balance

Debit revenue account    – To decrease the revenue balance

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1.

Cash
1	$83,000	$23,000	2
3	$8,300	$3,100	4
		$2,300	5
Bal.	$62,900
Fees Income
		$8,300	3
Bal.		$8,300
Supplies
5	$2,300
Bal.	$2,300
Equipment
2	$23,000
Bal.	$23,000
Advertising Expenses
4	$3,100
Bal.	$3,100
Derrick Wells
		$83,000	1
Bal.		$83,000

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2.

Cash
$17,100
Accounts payable
	$22,300
Equipment
$44,100
Charles Anderson, Capital
	$38,900