Vocabulary
An amount recorded on the left side of the T account
What is a debit?
The normal balance of the assets accounts.
What is the debit side?
Oct 2nd
Received cash from the owner as an investment $800
Credit owners, capitol 800
Oct 13 Paid cash for insurance 200
Credit Cash 200
Debit Prepaid insurance 200
Credit cash 1000
Debit Rent Expense 1000
The side of the account that is increased.
What is a normal balance?
The normal balance side of a liability account is the ____________
What is the credit side?
Oct 6 Paid Cash for supplies $40
Credit Cash 40
Debit Supplies 40
Oct 9 Paid cash for advertising 900
Debit Advertising Expense 900
Oct 11 Received cash from sales 500
Debit cash 500
Credit sales 500
An accounting device used to analyze transactions
What is a T Account?
Expenses are increased with a ___________
what is a debit?
Oct 7 Bought Supplies on account from Office Depot $300
Debit Supplies 300
Credit Accounts Payable office depot 300
Oct 9 Paid cash on account to supply depot 200
Credit Cash 200
Debit Accts Pay. 200
Oct 20 Received cash on account from Tom Dayton 250
Debit cash 250
Credit Accounts Receivable Tom Dayton 250
Account that is used for withdrawals
decrease to liability accounts are recorded on the
debit side
Oct 9 Received cash from sales $750
Debit cash 750
Credit Sales 750
Oct 14 Sold services on account to Tom Dayton 350
debit accounts receivable Tom Dayton 350
credit sales 350
Oct 12 Sold services on account to Mary Lou 900
Debit Accounts Receivable Mary Lou 900
Credit sales 900
Name three types of expense accounts.
What is rent expense, utilities expense, advertising expense
The drawing account is increased on the
debit side
Oct 11 Paid Cash to owner for personal use $500
Credit Cash 500
Debit Drawing 500
Debit cash 450
Credit Act. Receivable 450
Oct 16 Paid Cash on account to supply depot 150
Credit cash 150
Debit accounts payable supply depot 150