158) Identify the accounts to be debited and credited. Unless otherwise noted, t

Question

158) Identify the accounts to be debited and credited. Unless otherwise noted, the business uses the periodic inventory method. Debit sold merchandise for cash purchased merchandise on account issued a credit invoice for merghandise sold n account D, purchased office supplies for cash returned damaged merchandise, purchased on account received an invoice for the cost of received an invoice for the cost of sold merchandise on account (perpetual bought merchandise on account (perpetual transporting merchandise for resale G. merchandise to a customer H. ventory method used) method used) For each of the transactions listed below determine the items affected. Indicate whether they are increased or 159) decreased, and by how much. ample: Purchased supplies for 1000 cash 1 000 1 000 Supplies Received $600 payment from A. customers for previous on credit Owners atot e invested $2000 in the salaries totaling $800 to $3000 of office B. C lemployees D. on credit. urchased new office building for $300000. E. paid $150 000 cash, took out Received F. cash from sale of $100 office supplies. G Paid S4S9 for repairs to delivery 52200 for office equipment cash for performed services for $1200 withdrew $500 from the for personal use Sent a bill to a customer for K. $2600 for accounting services to be paid later

Explanation / Answer

158… Debit Credit A. Sold merchandise for cash Cash Sales B.Purchased merchandise on account Purchases Accounts Payable C.Issued a credit invoice for merchandise sold on account Accounts Receivable Sales D.Purchased office supplies for cash Supplies Cash E.Returned damaged merchandise ,purchased on account Accounts Payable Purchase Returns F.Received an invoice for the cost of transporting merchandise for resale Freight-out Accounts Payable G.Received an invoice for the cost of transporting merchandise to a customer Freight-out Accounts Payable H. Sold merchandise on account(Under Perpetual inventory method) Accounts Receivable Sales COGS Merchandise Inventory I.Bought merchandise on account(Under Perpetual inventory method) Merchandise Inventory Accounts Payable 159…. Increase Decrease Amount A.Recieved $ 600 payment from customers for previous purchases on credit Cash 600 Accounts Receivable 600 B.Owner invested $ 2000 in the business Cash 2000 Owner's capital 2000 C.Paid salaries totalling $ 800 to employees Salaries expense 800 Cash 800 D.Purchased $ 3000 of office equipment on credit Office Equipment 3000 Accounts payable 3000 E.Purchased new office building:paid $ 150000 cash,took out mortgage for $ 300000 Office Building 450000 Cash 150000 Mortgage 300000 F.Received cash from sale of $ 100 of office supplies Office supplies 100 Cash 100 G.Paid $ 459 for repairs to delivery truck Selling expense(repair costs) 459 Cash 459 H.Paid $ 2200 for office equipment purchased previously Accounts payable 2200 Cash 2200 I.Paid cash for performed accounting services for $ 1200 Administration expense 1200 Cash 1200 J.Owner withdrew $ 500 from the business for personal use Cash 500 Owner's Drawings 500 K.Sent a bill to a customer for $ 2600 for accounting services to be paid later Accounts receivables 2600 Fees Earned 2600

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