Indicate the Account(s) to Be Debited and Credited to Record

question 21

Multiple Choice

Indicate the account(s) to be debited and credited to record the following transactions.
-John partner invested cash in the business.
Debit ________ Credit ________

• A)Cash
• B)Accounts receivable
• C)Allowance for doubtful accounts
• D)Merchandise inventory
• E)Store supplies
• F)Store equipment
• G)Accumulated depreciation
• H)Notes payable
• I)Accounts payable
• J)John Partner's, Capital
• K)Joy Partner's, Capital
• L)John Partner's, withdrawals
• M)Joy Partner's, withdrawals
• N)Income summary
• O)Service revenue
• P)Gain on realization
• Q)Loss on realization

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Definitions:

Common Shares

are equity securities that represent ownership in a corporation, entitling holders to a share of the corporation's profits through dividends and/or capital appreciation.

Consolidated Financial Statements

Financial statements that show the financial position and results of operations for a parent company and its subsidiaries as one economic entity.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within a business's normal operating cycle if longer.

Acquisition Cost

The total cost incurred to acquire an asset, including purchase price and all other costs necessary to bring the asset to a condition ready for its intended use.