Chapter 2 Credits and Debits

Supplies $800, On Account $920

Debit Supplies $500, Credit On Account $500

After the Transaction what are the account balances?

• $300 Supplies ; $420 On Account

• $300 Supplies; $1,420 On Account

• $1,300 Supplies; $420 On Account

• $1,300 Supplies; $1,420 On Account

An account recorded on the right side of an account is called a

• transaction

• debit

• credit

• normal balance

Cash Bal $4,000, Supplies $1,675

Credit Cash $425, Debit Supplies $425

After the Transaction what are the account balances?

• $4,425 Cash ; $2,100 Supplies

• $4,425 Cash; $1,200 Supplies

• $3,575 Cash; $2,100 Supplies

• $3,575 cash; $1,200 Supplies

A Transaction for amounts your company will pay in the future for Supplies received today would be

• Credited to the Accounts Payable liability and Debited to Supplies

• Debited to the Accounts Payable liability and Credited to Supplies

• Credited ro the Accounts Receivables asset and Debited to Supplies

• Debited to the Accounts Receivables asset and Credited to Supplies

An accounting device used to analyze transactions is called

• a Transactions model

• a T account

• an Account balancer

• a chart of accounts

Cash Bal $1,800, Prepaid Insurance $0

Credit Cash $1,200, Debit Prepaid Insurance $1,200

After the Transaction what are the account balances?

• $3,000 Cash ; $1,200 Prepaid Insurance

• $600 Cash; $1,200 Prepaid Insurance

• $600 Cash; -$1,200 Prepaid Insurance

• $3,000 Cash; -$1,200 Supplies

Cash $6,020, Owner's Equity $11,080

Credit Cash $2,050, Debit Owner's Equity $2,050

After the Transaction what are the account balances?

• $3,970 Cash ; $13,130 Owner's Equity

• $3,970 Cash; $9,030 Owner's Equity

• $8,070 Cash; $13,130 Owner's Equity

• $8,070 Cash; $9,030 Owner's Equity

Supplies $650, On Account $1,050

Credit Supplies $300, Debit On Account $300

After the Transaction what are the account balances?

• $950 Supplies ; $750 On Account

• $350 Supplies; $750 On Account

• $950 Supplies; $1,350 On Account

• $350 Supplies; $1,350 On Account

The side of the account that is increased is called the

• transaction

• debit

• credit

• normal balance

Cash Bal $10,000, On Account $1,300

Credit Cash $800, Debit On Account $800

After the Transaction what are the account balances?

• $10,800 Cash ; $2.100 On Account

• $9,200 Cash; $1,300 On Account

• $9,200 Cash; $500 On Account

• $10,800 Cash; $500 On Account