Question

Review the transactions and determine the accounts, the account types (use assets, liabilities, common stock, dividends, revenue, and expenses), if they increase/decrease and if they are DR/CR. List accounts in order they would be in the journal entry. Refer to the Chart of Accounts for account titles. Collected cash for services Account

Purchased office furniture on account Account #1 Account Type ncrease/Decrease Debit/Credit Account #2 Account Type ncrease/Decrease Debit/Credit Provided services on account Account #1 Account Type ncrease/Decrease Debit/Credit Account #2 Account Type ncrease/DecreaseDebit/Credit Prepaid for rent. Account #1 Account Type ncrease/Decrease Debit/Credit Account #2 Account Type Increase/Decrease Debit/Credit

Answer 1

Accounting treatment (debit credit rules) of given entries

Step-by-step explanation:

• Purchased office furniture on account Account

Furniture ie Asset increase - Debit , Creditor (Furniture Supplier) ie Liability increase - Credit

• Provided services on account

Debtor ie Asset increase - Debit , Sale ie Income increase - Credit

• Prepaid Rent

Prepaid Expense (Rent) ie Asset Increase - Debit. Rent paid now implies later rent ie (Expense) decrease - Credit