Exam 3: The Recording Process: Debits and Credits

Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account.

Liabilities normally show

When Accounts Payable account is debited, it indicates

Which of the following statements is correct?

At October 1, 2020, Medina Co. had an accounts payable balance of $50,000. During the month, the company made purchases on account of $35,000 and made payments on account of $48,000. At October 31, 2020, the accounts payable balance is

Camper Van Company purchased equipment for $2,300 cash. As a result of this event,

During February 2020, its first month of operations, the owner of Solcist Co. invested cash of $50,000. Solcist had cash revenues of $16,000 and paid expenses of $21,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 29?

On May 1, 2020, Anzola Company. reported a cash balance of $6,000. During May, Anzola deposited $12,000. Total disbursements were $7,000. The cash balance at the end of May is a

For each of the following accounts, indicate the effects of (a) a debit and (b) the normal account balance. 1. Notes Payable 2. Cash 3. Salaries and Wages Expense 4. Service Revenue 5. Equipment 6. Owner's Capital

An account is an individual accounting record of increases and decreases in specific

Which one of the following is not a part of an account?

An account consists of

A service performed on account increases both assets and liabilities.

In October, Panda Bear Childcare collected payment from customers billed in September for September childcare services. The receipt of the cash is recorded with a debit to Cash and a credit to

Which of the following statements is false?

For the accounts listed below, indicate if the normal balance of the account is a debit or credit.

Indicate the account debited and the account credited for each date:

On January 4, Ballard Industries purchased supplies of $4,000 on credit. Ballard will debit Supplies and

The investment of cash in the business by the owner is recorded with a debit to Owner's Capital.

The normal balance of any account is the