Transactions
When you receive Cash from owner as an investment, what two accounts are affected and how?
Cash is Debited
Owner, Capital is Credited
When cash is paid for supplies, the Supplies account is increased by this.
What is a debit (or left side)?
A list of accounts used by a business
What is Chart of Accounts
Money invested into the business by the owner.
What is an investment or capital?
Right side of a T Account.
What is a credit?
Every transaction involves at least how many accounts.
What are two accounts?
An accounting device used to analyze transactions
What is a T Account
Cash, Prepaid Insurance, Supplies, Accounts Receivables.
What are assets?
Increasing side of a liability or owner's capital account
What is the right side or credit side?
When a business pays cash on account, a liability is decreased by this
What is debit?
Assets = Liabilities + Owners Equity
What is the Accounting Equation?
Accounts Payable--Smith Supplies is this type of an account.
What is a liability?
Payments for advertising, utilities, and rent
Expense transactions
The balance of an account increases on the same side as the normal balance side. True or False
What is true?
The side of an account that is increased.
What is normal balance?
Judy Casey, Capital
Judy Casey, Drawing
Any Sales
Any Expense
What are Owner's Equity accounts?
Two transactions that decrease owner's equity...
Expenses and Withdrawals (Drawing)
(you don't have to say drawing)
C. Eager, Drawing is increased by this.
What is a debit?
Amounts to be paid in the future for goods or services already acquired.
What is accounts payable?
The normal balance side of an asset
What is debit or left side?