For each of the following transactions: (1) Identify the two accounts


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For each of the following transactions: (1) Identify the two accounts affected. (2) Identify if we are increasing or decreasing each account (3) Follow our debit and credit rules to determine which accounts to debit and which to credit EV

Sale price $15.00 Regular price $30.00

For each of the following transactions: (1) Identify the two accounts affected.


(2) Identify if we are increasing or decreasing each account

(3) Follow our debit and credit rules to determine which accounts to debit and which to credit

EVENT (1). INVESTMENT OF CASH BY STOCKHOLDERS
EVENT (2). NOTE ISSUED IN EXCHANGE FOR CASH.
EVENT (3). PURCHASE OF OFFICE EQUIPMENT FOR CASH
EVENT (4). PURCHASE OF SUPPLIES ON ACCOUNT.
EVENT (5). COLLECTED CASH FROM A CLIENT THAT HAD BEEN BILLED IN A PREVIOUS PERIOD


I will complete one as an example:

Paid Cash for Utilities

(1) Identify the two accounts affected. - CASH and UTILITIES EXPENSE

(2) Identify if we are increasing or decreasing each account - DECREASING Cash and INCREASING Utilities Expense

(3) Follow our debit and credit rules to determine which accounts to debit and which to credit -

Utilities Expense is an expense, an increase to an expense is a debit. Cash is an asset, a decrease to an asset is a credit.

This transaction we would DEBIT Utilities Expense (left side) and CREDIT Cash (right side)

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