a
What is the basic accounting equation?
Assets= Liabilities+ Owner's Equity
What type of account is Accounts payable?
Liability
What type of account is cash?
asset
What type of account is service revenue?
revenue
What type of account is rent expense?
expense
A business purchases $600 of supplies on account. What is the correct entry?
Debit supplies $600, and credit accounts payable $600
What type of a T-account is the debit side?
left
What type of account is owner's capital?
Equity
Which side normally increases an expense account?
debit
A business buys $1,000 of equipment for cash. What is the correct journal entry?
Debit equipment $1,000, and credit cash $1,000
Accounts payable has $1,200 credit. Which side is it posted on?
right side
A $500 debit to cash is posted to which side of the cash T-account?
left side
A business pays $800 in rent with cash. What is the correct journal entry?
Debit rent expense $800, and credit cash $800
What side of the T-account is the credit side?
the right side
Which side normally increases a liability account?
credit
A business has $20,000 in assets and $8,000 in liabilities. What is its equity?
$12,000
A business buys $2,000 of equipment with cash. What happens to total assets?
The total assets stay the same.
A business borrows $5,000 from a bank and receives cash. What happens?
Assets increase $5,000 and liabilities increase $5,000
A business borrows $10,000 from a bank. What is the correct entry?
Debit cash $10,000, and Credit notes payable $10,000
Which normally increases an asset account
debit
Cash has debits of $5,000 and $2,000 and credits of $1,500. What is the ending balance?
$5,500 debit
Assets are $30,000 and equity is $18,000. What are the liabilites?
$12,000
Supplies has a $2,000 debit balance. The company uses $500 of supplies, creating a $500 credit to supplies. What is the new supplies balance?
$1,500 debit
A business receives $2,500 cash for services preformed. What is the correct entry?
Debit cash $2,500, and credit service revenue $2,500
Equipment has debits of $8,000 and $4,000 and a credit of $2,000. What is the ending balance?
$10,000 debit