Click the icon to view the transactions) equirement it would be recorded in the
ID: 2330229 • Letter: C
Question
Click the icon to view the transactions) equirement it would be recorded in the journal For each transaction shown determino the accounts afectod the type of account wheother the account increases or decreanses, and whether on the debit or credit side. The first transaction has been analyzed for you E (Click the icon to view the analyss of the May 1 transaction) May 3 Purchased suppies tor $150, paid cash. Increase/DecreaseDr or Cr Type Asset Transaction Date Account Affected Increase Cr May 3Cash Expense Increase Cr Common stockExplanation / Answer
Transaction Date
Accounts Affected
Type
Increase/Decrease
Dr. or Cr.
May 1
Cash
Asset
Increase
Dr
May 1
Common Stock
Shareholder's Equity
Increase
Cr
May 3
Supplies
Asset
Increase
Dr
May 3
Cash
Asset
Decrease
Cr
May 6
Equipment
Fixed Asset/Asset
Increase
Dr
May 6
Cash
Asset
Decrease
Cr
May 11
Advertising Expense
Expense
Increase
Dr
May 11
Cash
Asset
Decrease
Cr
May 18
Cash
Asset
Increase
Dr
May 18
Notes Payable
Liability
Increase
Cr
May 27
Telephone Expense
Expense
Increase
Dr
May 27
Cash
Asset
Decrease
Cr
Explanatory Notes
All assets are Debited when they increase and credited when they decrease such as entry on March 3 . Supply is an asset, it increased and at the same time cash is decreased so cash is credited and supply is debited.
Cash is credited every time an expense is paid out of cash, See entry made on 11th may for example.
All expenses are Nominal accounts and are Debited when they Increase, Generally Expense Accounts are not credited exept in case of a correction entry.
Liabilities and Shareholder’s Equity is Credited when they increase and debited when they decrease.
Transaction Date
Accounts Affected
Type
Increase/Decrease
Dr. or Cr.
May 1
Cash
Asset
Increase
Dr
May 1
Common Stock
Shareholder's Equity
Increase
Cr
May 3
Supplies
Asset
Increase
Dr
May 3
Cash
Asset
Decrease
Cr
May 6
Equipment
Fixed Asset/Asset
Increase
Dr
May 6
Cash
Asset
Decrease
Cr
May 11
Advertising Expense
Expense
Increase
Dr
May 11
Cash
Asset
Decrease
Cr
May 18
Cash
Asset
Increase
Dr
May 18
Notes Payable
Liability
Increase
Cr
May 27
Telephone Expense
Expense
Increase
Dr
May 27
Cash
Asset
Decrease
Cr
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.