Under a Double-Entry System Show How the Entry in Each $\quad$

question 16

Essay

Under a double-entry system show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Debit or Credit
1. An increase in Salaries and Wages Expense. $\quad$$\quad$$\quad$$\quad$$\quad$$\underline{\quad\quad\quad}$
2. Adecrease in Accounts Payable. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\underline{\quad\quad\quad}$
3. An increase in Prepaid Insurance. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\underline{\quad\quad\quad}$
4. An increase in Owner's Capital. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\underline{\quad\quad\quad}$
5. A decrease in Supplies. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\underline{\quad\quad\quad}$
6. An increase in Owner's Drawings. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\underline{\quad\quad\quad}$
7. An increase in Service Revenue. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\underline{\quad\quad\quad}$
8. A decrease in Accounts Receivable. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\underline{\quad\quad\quad}$
9. An increase in Rent Expense. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\underline{\quad\quad\quad}$
10. A decrease in Equipment. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\underline{\quad\quad\quad}$

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Definitions:

Accounts Receivable

Accounts receivable represents the money owed to a company by its customers for goods or services delivered but not yet paid for.

Accounts Receivable Turnover

A financial ratio indicating how quickly a company collects cash from credit sales, calculated over a given period.

Accounts Receivable

Accounts receivable represents the money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Sales

The cumulative amount of money made by a business from selling its goods or services.