Accounting (3)
. An accountant has debited an asset account for $800 and credited a liability account for $700. Which of the following would be an incorrect way to complete the recording of the transaction?
... Credit a stockholders' equity account for $100.
Debits
... increase assets and decrease liabilities.
Courtney Company purchased equipment for $1,800 cash. As a result of this event,
... total assets remained unchanged.
In the first month of operations, the total of the debit entries to the Cash account amounted to $1,200 and the total of the credit entries to the Cash account amounted to $900. The Cash account has a
...$300 debit balance.
Comstock Company provided consulting services and billed the client $2,500. As a result of this event
...Both assets and equity increased by $2,500.
An accountant has debited an asset account for $1,000 and credited a liability account for $500. What can be done to complete the recording of the transaction?
...Credit a different asset account for $500.
Budke Corporation paid dividends of $5,000. As a result of this event, the
...Dividends account was increased by $5,000.
Which of the following describes the classification and normal balance of the Retained Earnings account?
...Stockholders' equity, credit
Powers Corporation received a cash advance of $500 from a customer. As a result of this event,
...assets increased by $500.
A payment of a portion of an accounts payable will
...not affect stockholders' equity.
The normal balance of any account is the
...side which increases that account.
A debit to an asset account indicates a(n)
Increase in the asset
A revenue account
Is increased by credits