Accounting Questions?
Accounting Questions?
Is each of the following a asset, liability, or Capital, and state whether it is a debit or credit
a) increase in (Accounts Payable)
b) A broken coffee maker that can't be repaired is thrown out.
c) (owner) invests 2000 dollars cash in the business
d) Obtain a (loan) of 5000 dollars from the bank.
e) (owner) withdraws 450 dollars from the business for personal use.
Answers:
Bosco: a) Credit
b) shouldn't even be on the books, but Credit asset & Debit Accumulated Depreciation. If not fully depreciated, it's more complicated.
c) Debit Cash & Credit Owners Equity
d) Debit cash & Credit Notes Payable (liability)
e) tell him to give it back...
2008-03-30 13:45:59
2008-03-30 13:45:59
Chosen Answer
Sandy: a) increase in (Accounts Payable) Liability, credit b) A broken coffee maker that can't be repaired is thrown out The net book value is written off to expense. Assets decrease, credit Capital, debit c) (owner) invests 2000 dollars cash in the business Assets increase by $2,000, debit Capital increases by $2,000, credit d) Obtain a (loan) of 5000 dollars from the bank Assets increase $5,000, debit Liabilities increase $5,000, credit e) (owner) withdraws 450 dollars from the business for personal use. Assets decrease $450, credit Capital decrease $450, debit
2008-04-01 00:42:52
Sandy: a) increase in (Accounts Payable) Liability, credit b) A broken coffee maker that can't be repaired is thrown out The net book value is written off to expense. Assets decrease, credit Capital, debit c) (owner) invests 2000 dollars cash in the business Assets increase by $2,000, debit Capital increases by $2,000, credit d) Obtain a (loan) of 5000 dollars from the bank Assets increase $5,000, debit Liabilities increase $5,000, credit e) (owner) withdraws 450 dollars from the business for personal use. Assets decrease $450, credit Capital decrease $450, debit
2008-04-01 00:42:52