PART A in Gibson Company assets decreased $50,000 and its liabilities decreased

Question

PART A in Gibson Company assets decreased $50,000 and its liabilities decreased ers equity therefore (circle the correct answer) $90,000. Its a) Increased $40,000 b) Decreased $140,000 c) Decreased $40,000 d) Increased $140,000 Q) F or each of the following accounts, indicate the effect of debit or a credit on the account an d the normal balance. Cash was already done for you Normal Balance Debit Debit Effect Credit Effect Cash Increase Decrease Q2 Accounts Payable Q3 Advertising Expense Q4 Service Revenue Q5 Accounts Receivable Q6 Retained Earnings Q7 Dividends On December 1, Year 1 BEST BUY sells a $1,700 computer. Customer Sherry pays $600 in cash and signs an installment agreement for the remaining $1,100 to be paid the following year, Year 2 On the income statement of BEST BUY, how much revenue should be recognized? Q8. In Year 1 09. In Year 2 Exam 3 VA Ch 13,3, 4 ACCT

Explanation / Answer

Question 1 Increased $40,000 Debit Effect Credit Effect Normal Balance Cash Increase Decrease Debit Question 2 Accounts Payable Decrease Increase Credit Question 3 Advertising Expense Increase Decrease Debit Question 4 Service Revenue Decrease Increase Credit Question 5 Accounts Receivable Increase Decrease Debit Question 6 Retained Earnings Decrease Increase Credit Question 7 Dividends Increase Decrease Debit Question 8 In Year 1 $1,700 Question 9 In Year 2 $ 0

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