Conway Copy Shop Is Owned and Operated by Gerald Conway

question 54

Short Answer

Conway Copy Shop is owned and operated by Gerald Conway. The shop's accounts are presented below. Review the transactions presented and determine the appropriate debits and credits to the affected accounts.

Cash
Accounts Receivable
Office Supplies
Prepaid Rent
Copier Equipment
Accounts Payable
G. Conway, Capital
G. Conway, Drawing
Fees Income
Rent Expense
Utilities Expense
Salaries Expense

-Issued a check for $3,400 to pay salaries

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Definitions:

Cost Center

A business unit that does not directly add to profit but still incurs costs, such as a human resources department.

Cost Center

A part of an organization that does not directly add to profit but incurs costs, such as the customer service department.

Profit Center

A branch or division of a company that is treated as a separate entity for the purpose of revenue and profit calculation, allowing for better management and financial analysis.

Profit Center

A part or division of a business that is directly responsible for generating its own revenue and profit, allowing for assessment of performance.