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Under a double-entry system, show how the entry in each statement is entered in

ID: 2330842 • Letter: U

Question

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.

Debit or Credit

1.

An increase in Salaries and Wages Payable.

___________________

2.

A decrease in Accounts Receibable.

___________________

3.

An decrease in Prepaid Insurance.

___________________

4.

An decrease in Owner's Capital.

___________________

5.

A increase in Office Supplies.

___________________

6.

An increase in Owner's Drawings.

___________________

7.

An increase in Service Revenue.

___________________

8.

A increase in Accounts Payable.

___________________

9.

An increase in Rent Expense.

___________________

10.

A decrease in Store Equipment.

___________________

11. An Increase in Cash

___________________

12. An decrease in Retained Earnings

___________________

13. A decrease in Unearned Revenue

___________________

14. A increase in Notes Receivable

___________________

15. An increase in Sales Tax Payable

___________________

16. An increase in Travel Expense

___________________

17. An increase in Common Stock

___________________

18. An increase in Merchandise Invedntory

___________________

19. A increase in Stock Investments

___________________

20. An decrease in Dividends Payable

___________________

Explanation / Answer

Solution :

1. An increase in Salaries and Wages Payable - Credit

2. A decrease in Accounts Receibable - Credit

3. An decrease in Prepaid Insurance - Credit

4. An decrease in Owner's Capital - Debit

5. A increase in Office Supplies - Debit

6. An increase in Owner's Drawings - Debit

7. An increase in Service Revenue - Credit

8. A increase in Accounts Payable - Credit

9. An increase in Rent Expense - Debit

10. A decrease in Store Equipment - Credit

11. An Increase in Cash - Debit

12. An decrease in Retained Earnings - Debit

13. A decrease in Unearned Revenue - Debit

14. A increase in Notes Receivable - Debit

15. An increase in Sales Tax Payable - Credit

16. An increase in Travel Expense - debit

17. An increase in Common Stock - Credit

18. An increase in Merchandise Invedntory - Debit

19. A increase in Stock Investments - Debit

20. An decrease in Dividends Payable - Debit