Transaction: A transaction is a business event which has a monetary value that creates an impact on the business. The process of identifying the economic effects of each transaction of the business is known as transaction analysis. Rules of debit and credit: “An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited. Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”. To identify: which account should be debited, and which account should be credited for purchase of supplies on account

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Answer 1

Question

Chapter 3, Problem 12Q

(a)

To determine

Transaction:

A transaction is a business event which has a monetary value that creates an impact on the business. The process of identifying the economic effects of each transaction of the business is known as transaction analysis.

Rules of debit and credit:

“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.

Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.

To identify: which account should be debited, and which account should be credited for purchase of supplies on account

(b)

To determine

To identify: Which account should be debited, and which account to be credited for cash received on signing a promissory note.

(c)

To determine

To identify: Which account should be debited, and which to be credited for salaries paid to employees.

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Students have asked these similar questions

Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal as illustrated in this chapter, indicate the journal in which each of the following transactions should be recorded:a. Receipt of cash refund from overpayment of taxes.b. Adjustment to record accrued salaries at the end of the year.c. Providing services on account.d. Investment of additional cash in the business by the owner.e. Receipt of cash on account from a customer.f. Receipt of cash for rent.g. Receipt of cash from sale of office equipment.h. Sale of used office equipment on account, at cost, to a neighboring business.i. Closing of drawing account at the end of the year.j. Providing services for cash.

Answer 2

Question

Chapter 3, Problem 12Q

(a)

To determine

Transaction:

A transaction is a business event which has a monetary value that creates an impact on the business. The process of identifying the economic effects of each transaction of the business is known as transaction analysis.

Rules of debit and credit:

“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.

Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.

To identify: which account should be debited, and which account should be credited for purchase of supplies on account

(b)

To determine

To identify: Which account should be debited, and which account to be credited for cash received on signing a promissory note.

(c)

To determine

To identify: Which account should be debited, and which to be credited for salaries paid to employees.

Expert Solution & Answer

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Answer 3

Question

Chapter 3, Problem 12Q

(a)

To determine

Transaction:

A transaction is a business event which has a monetary value that creates an impact on the business. The process of identifying the economic effects of each transaction of the business is known as transaction analysis.

Rules of debit and credit:

“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.

Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.

To identify: which account should be debited, and which account should be credited for purchase of supplies on account

(b)

To determine

To identify: Which account should be debited, and which account to be credited for cash received on signing a promissory note.

(c)

To determine

To identify: Which account should be debited, and which to be credited for salaries paid to employees.

Expert Solution & Answer

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Answer 4

Question

Chapter 3, Problem 12Q

(a)

To determine

Transaction:

A transaction is a business event which has a monetary value that creates an impact on the business. The process of identifying the economic effects of each transaction of the business is known as transaction analysis.

Rules of debit and credit:

“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.

Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.

To identify: which account should be debited, and which account should be credited for purchase of supplies on account

(b)

To determine

To identify: Which account should be debited, and which account to be credited for cash received on signing a promissory note.

(c)

To determine

To identify: Which account should be debited, and which to be credited for salaries paid to employees.

Expert Solution & Answer

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Answer 5

Chapter 3, Problem 12Q

(a)

To determine

Transaction:

A transaction is a business event which has a monetary value that creates an impact on the business. The process of identifying the economic effects of each transaction of the business is known as transaction analysis.

Rules of debit and credit:

“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.

Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.

To identify: which account should be debited, and which account should be credited for purchase of supplies on account

(b)

To determine

To identify: Which account should be debited, and which account to be credited for cash received on signing a promissory note.

(c)

To determine

To identify: Which account should be debited, and which to be credited for salaries paid to employees.

Answer 6

Chapter 3, Problem 12Q

(a)

To determine

Transaction:

A transaction is a business event which has a monetary value that creates an impact on the business. The process of identifying the economic effects of each transaction of the business is known as transaction analysis.

Rules of debit and credit:

“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.

Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.

To identify: which account should be debited, and which account should be credited for purchase of supplies on account

Answer 7

Chapter 3, Problem 12Q

(a)

To determine

Transaction:

A transaction is a business event which has a monetary value that creates an impact on the business. The process of identifying the economic effects of each transaction of the business is known as transaction analysis.

Rules of debit and credit:

“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.

Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.

To identify: which account should be debited, and which account should be credited for purchase of supplies on account

Answer 8

(b)

To determine

To identify: Which account should be debited, and which account to be credited for cash received on signing a promissory note.

Answer 9

(b)

To determine

To identify: Which account should be debited, and which account to be credited for cash received on signing a promissory note.

Answer 10

(c)

To determine

To identify: Which account should be debited, and which to be credited for salaries paid to employees.

Answer 11

(c)

To determine

To identify: Which account should be debited, and which to be credited for salaries paid to employees.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 3 - Prob. 1Q Ch. 3 - Can a business enter into a transaction that...Ch. 3 - Are the followingevents recorded in the accounting...Ch. 3 - Prob. 4Q Ch. 3 - Prob. 5Q Ch. 3 - Prob. 6Q Ch. 3 - Prob. 7Q Ch. 3 - Misty Reno, a beginning accounting student,...Ch. 3 - Prob. 9Q Ch. 3 - What is the normal balance for each of these...

Solution Summary: The author explains the process of identifying the economic effects of each transaction of the business, known as transaction analysis.

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To identify: Which account should be debited, and which account to be credited for cash received on signing a promissory note.

To identify: Which account should be debited, and which to be credited for salaries paid to employees.

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