College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 7E
Describe a transaction that resulted in the following changes in accounts:
- a. Rent Expense is increased by $1,050, and Cash is decreased by $1,050.
- b. Advertising Expense is increased by $835, and Accounts Payable is increased by $835.
- c. Accounts Receivable is increased by $372, and Service Income is increased by $372.
- d. Cash is decreased by $410, and C. Tryon, Drawing, is increased by $410.
- e. Equipment is increased by $1,850, Cash is decreased by $850, and Accounts Payable is increased by $1,000.
- f. Cash is increased by $1,650, and Accounts Receivable is decreased by $1,650.
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The business collects an OR5,000 account receivable from its customer. How is the accounting equation affected? Select one:
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c. Assets increase OR5,000; liabilities increase OR 5,000.
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Bennett Company paid balance due of $3,000 on equipment that had been previously purchased on account.
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Increases and decreases in various types of accounts are listed below. In each case, indicate by "Dr." or "Cr." (a) whether the change in the account would be recorded as a debit or a credit and (b) whether the normal balance of the account is a debit or a credit.
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All nine transactions for Homes Realty, Inc. for June, the first month of operations, are…
Chapter 1 Solutions
College Accounting (Book Only): A Career Approach
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