Accounting problem. ASAP please. Thanks. Alice Roberts uses the following accoun

Question

Accounting problem. ASAP please. Thanks. Alice Roberts uses the following accounts in her business: INSTRUCTIONS Analyze each of the following transactions. In your working papers, explain the debit and the credit. Use the format shown in the example. Example: On June 2 Alice Roberts invested $5,000 of her own money in a business called Roberts Employment Agency. a. The asset account Cash in Bank is Increased. Increases in asset accounts are recorded as debits. b. The owner?s capital account Alice Roberts, Capital is increased. Increases in the owner?s capital account are recorded as credits.

Explanation / Answer

(a) June 3

Office Equipment (an Asset account) will be increased by $2,500, so this account will be debited.

Since this is an on account (credit) purchase, Accounts Payable (current liability) will increase by $2,500, so this account will be credited.

(b) June 9

Office furniture (asset) will increase by $750 & this account will be debited with $750.

Alice Roberts, Capital (a Capital/Equity account) is increased and will be credited $750.

(c) June 15

Accounts payable (current liability) has decreased by $1,000. This account should be debited.

Cash in bank (asset account) will decrease by $1,000. Cash account will be credited.

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