Question

For the description below about the Hillary Curran's psychology practice, identify the appropriate account type(s), whether they are increasing or decreasing, and whether you should record a debit or credit. You MUST use the letters that represent each item (Asset is represented by AS), and the letters MUST be capitalized with no period after the letters. Just as presented in each table below. DIRECTION IN Increasing DC Decreasing ACCOUNT TYPE AS Asset LI Liability OC Equity - Owner Contributions ow Equity - Owner Withdrawal RV Equity - Revenue EX Equity - Expense DEBIT/CREDIT DB Debit CR Credit

1)

Paid (1) cash for the (2) next six months’ insurance premium, $800.

(1) Account Type:

Direction:

Debit/Credit:

(2) Account Type:

Direction:

Debit/Credit:

2)

(1) Completed psychological counseling with a client and (2) sent a bill for $850 for services rendered.

(1) Account Type:

Direction:

Debit/Credit:

(2) Account Type:

Direction:

Debit/Credit:

3)  

Paid $1,000 of (1) cash for the (2) amount owed from the previous purchase of office furniture.

(1) Account Type:

Direction:

Debit/Credit:

(2) Account Type:

Direction:

Debit/Credit:

4)

Paid $5,400 (1) cash for (2) (the next) three months’ rent of an office.

(1) Account Type:

Direction:

Debit/Credit:

(2) Account Type:

Direction:

Debit/Credit:

5)

(1) The owner took $2,000 (2) of cash for personal living expenses.

(1) Account Type:

Direction:

Debit/Credit:

(2) Account Type:

Direction:

Debit/Credit:

Answer 1

Solution :-

Transaction Number	(1)	(2)
Account Type	Direction	Debit/Credit	Account Type	Direction	Debit/Credit
1	AS	DC	CR	AS	IN	DB
2	RV	IN	CR	AS	IN	DB
3	AS	DC	CR	AS	DC	DB
4	AS	DC	CR	AS	IN	DB
5	AS	DC	CR	OW	IN	DB