Question

Identifying Transactions Rocky Mountain Tours Co. is a travel agency. The nine transactions recorded by Rocky Mountain Tours during June 20Y2, its first month of operations, are indicated in the following T accounts: Cash Equipment 15,000 Dividends 1,500 (2) (3) (9) (1) (7) 40,000 13,100 (3) 4,000 5,000 6,175 6,000 1,500 Accounts Receivable 20,500 (7) 13,100 Accounts Payable 6,000 (3) 10,000 Service Revenue (5) 20,500 (5) Common Stock Supplies 4,000 (8) (2) 2,200 (1) 40,000 (4) (8) Operating Expenses 6,175 2,200 Indicate for each debit and each credit: whether an asset, liability, stockholders' equity, dividend, revenue, or expense account was affected and whether the account was increased or decreased. Account Debited Account Credited Transaction Type Effect Type Effect | ම ම ම ම ම ව ම

Answer 1

Transaction Account Debited Type Effect Account Credited Type Effect Asset Asset Asset Increase Increase Increase Expense Increase Asset Increase Liability Decrease Asset Increase Expense Increase Dividend Increase Stock Holder's equity Increase Asset Decrease Asset Decrease Liability Increase Asset Decrease Revenue Increase Asset Decrease Asset Decrease Asset Decrease Asset Decrease