Accounting

On 6/25 supplies costing $1000 were purchased, but only $400 of this amount was paid on 6/25. The remainder of the bill went on account. To record this transaction on 6/25: Supplies would be increased by __; Cash would be decreased by ___ and Accts Payable would be increased by ___.

1,000/400/600

Select the account that would be decreased if the owner of Hilliary's Hair Salon decides to withdraw $40 for personal use.

Cash

Expenses Revenues Withdrawals Investments

Decrease equity and are the cost of assets or services used to earn revenue. Increase equity and are the assets earned from a company's earning activities. Decrease equity and are the assets removed from the company's for personal use. Increase equity and are assets an owner puts into the business.

During September, Sally's Hair Salon purchased $900 of supplies on account. In October, Sally's wants to make a payment of $200 on this bill. Record the October transaction into Sally's accounting equation by:

Decreasing Account Payable, $200 Decreasing Cash, $200

When using the accounting equation, recording the purchase of equipment for cash would include an increase to the _____ account and a decrease to the____.

Equipment/Cash

Bob's Bakery receives its utility bill of $800 for the month and pays it immediately. Record this transaction in the accounting equation.

Increase Expenses and Decrease Cash

Jackson Programming paid its June rent of $500 cash. Demonstrate how to use the accounting equation to record the transaction by completing the following sentence.

Jackson would decrease cash and increase expense in the accounting equation.

Given the accounts below, choose all that affect equity.

Owner's Capital Owners Investment Expenses Owner's Withdrawals Revenues

Which of the statements below define(s) an assets?

Resources with future benefits. Resources controlled by the business. A resourced owned.

Owner withdrawals cause a ____ in the owner's equity and are recorded directly in owner's_____.

decrease/withdrawal

Jackson's Catering Services sold cookies to the local college. The college paid immediately. Record this transaction in Jackson's accounting equation by:

increasing Cash; Increasing Revenues

Which statements below define a liability?

A creditor's claim against the asset of a business. The company obligations to provide assets, products or service to others. An amount owed to a creditor.

When supplies are purchased on credit it means that

A liability has been incurred, the accounts payable account will be increased, and the business will pay for the supplies at a later time.

Pete Jackson purchased office equipment costing $300 for his business and paid immediately. Record the transaction in the accounting equation by:

decreasing Cash; Increasing Equipment

Russell's Consulting services provided $1000 of services to the local college and immediately collected $700, but the college wants to pay the rest next month. Record this transaction in the accounting equation for Russell's Consulting Service by:

increasing both Cash and Accounts Receivable; and increasing Revenues.

The Accounts Payable account is _____ account.

liability