Question

For each of the following accounts, indicate the effects of a debit and a credit on the accounts and the normal balance of the account. Debit Effect Credit Effect Normal Balance 1. Accounts Payable 2. Advertising Expense 3. Service Revenue 4. Accounts Receivable 5. Owner's Capital 6. Owner's Drawings Click If you would like to Show Work for this question: Open Show Work

Answer 1

	Debit Effect	Credit Effect	Normal Balance
(a) Accounts Payable	Decrease	Increase	Credit
(b) Advertising Expense	Increase	Decrease	Debit
(c) Service Revenue	Decrease	Increase	Credit
(d) Accounts Receivable	Increase	Decrease	Debit
(e) Owner's Capital	Decrease	Increase	Credit
(f) Owner's Drawings	Increase	Decrease	Debit

Date June 1 June 2 Account Debited Account Credited Cash Oleg Thorn, Capital Equipment Accounts Payable Rent Expense Cash Accounts Receivable-K.Johnsen Service Revenue June 3 June 12 Credit Debit $5,000 $5,000 $3,600 $3,600 Journal Entry Date Account Title June 1 Cash Oleg Thorn, Capital (To record capital invested in business) June 2 Equipment Accounts Payable (To record purchase of equipment) June 3 Rent Expense Cash (To record rent expense) June 12 Accounts Receivable-K.Johnsen Service Revenue To re service revenue) $800 $800 $400 $400

1-Aug	The Assets	Cash	is	Increased	Debit	Increase in Cash
	the Owner's Equity Account	Owner's Capital	is	Increased	Debit	Cash	9,000.00
					Credit	Increase in Owner's Capital
					Credit	Owner's Capital	9,000.00
4-Aug	The Assets	Prepaid Insurance	is	Increased	Debit	Increase in Prepaid Insurance
	the Assets	Cash	is	Decreased	Debit	Prepaid Insurance	2,100.00
					Credit	Decrease in Cash
					Credit	Cash	2,100.00
16-Aug	The Assets	Cash	is	Increased	Debit	Increase in Cash
	the Revenue	Service Revenue	is	Increased	Debit	Cash	3,600.00
					Credit	Increase in Revenue
					Credit	Service Revenue	3,600.00
27-Aug	The Expenses	Salaries and Wages Expesnes	is	Increased	Debit	Increase in Salary Expesnes
	The Assets	Cash	is	Decresed	Debit	Salaries and Wages Expesnes	1,000.00
					Credit	Decrease in Cash
					Credit	Cash	1,000.00

1-Aug	Cash	$9,000
	Owner's Capital		$9,000
4-Aug	Prepaid insurance	$2,100
	Cash		$2,100
16-Aug	Cash	$3,600
	Service revenue		$3,600
27-Aug	Salaries and Wages expense	$1,000
	cash		$1,000