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ACC 111:-Principles of Accounting I -Section 06 Fall 2017 Chapter 2 Homework E BusinessCourse E Menu CLICK HERE TO REVIEW LEARNING OBJECTIMES QUESTION 1 Not complete 0.50 points out of 2.00 ヤRemove flag Debit and Credit Effects Indicate the account that will be debited for each of the following transactions a. Issued common stock for cash Common stock b. Borrowed money from a bank Cash C. Provided services on account Accounts receivable d. Purchased inventory on account Inventory e. Collected cash from customers that owed a balance due Accounts payable x Check You have correctly selected 3 Partially correct 曰/
Expert Answer
note: cash account is to be debited in both the cases marked Red.
a.Issued common stock for cash [ cash ]
Cash account will be debited since the cash balance inreases when common stock is issued for cash.
the following will be the journal entry
| Cash a/c…………Dr | $xxx | |
| ……………To Common Stock a/c | $xxx |
E.Collected cash from customers that owed a balance due [ Cash ]
Cash account will be debited, since cash balance increases when we receive cash from customers and accounts receivable is to be credited.
the following will be the journal entry:
| Cash a/c | $xxx | |
| ………To Accounts Receivable a/c | $xxx |
