bson Company assets decreased $50,000 and its liabilities decreased equity there

Question

bson Company assets decreased $50,000 and its liabilities decreased equity therefore (circle the correct answer): Q1 tock a) Increased $40,000 b) Decreased $140,000 c) Decreased $40,000 d) Increased $140,000 each of the following accounts, indicate the effect of debit or a credit on the account and the normal balance. Cash was already done for you Normal Balance Debit Debit Effect Credit Effect Cash Increase Decrease Q2 Accounts Payable Q3 Advertising Expense Q4 Service Revenue Q5 Accounts Receivable Q6 Retained Earnings Q7 Dividends On December 1, Year 1 BEST BUY sells a $1,700 computer. Customer Sherry pays $600 in cash and signs an installment agreement for the remaining $1,100 to be paid the following year, Year 2 On the income statement of BEST BUY, how much revenue should be recognized? Q8. In Year 1 09 In Year 2 Exam 3 VA Ch 13, 3, 4 ACCT

Explanation / Answer

1 Ans : A ) 40000 increase Increased $40,000 Assets = Liabilities + Stockholders' Equity -50,000 = -90,000 + x x = 40,000 Debit Credit Normal balance 2 Accounts Payable Decrease Increase Credit Advertising Expense Increase Decrease Debit Service revenue Decrease Increase Credit Accounts Receivable Increase Decrease Debit Retained earnings Decrease Increase Credit dividends Increase Decrease Debit

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