For Each Transaction, Identify Which Account Is Debited and Which

question 42

Essay

For each transaction, identify which account is debited and which account is credited. Use proper account titles.
$$\begin{array} { | l | l | l | } \hline { \text { Transaction } } & \text { Debit } & \text { Credit } \\\hline \text { Received a bill for utilities to be } & & \\\text { paid next month } & & \\\hline \text { Performed services on account } & & \\\hline \text { Paid cash for a 12-month } & & \\\text { insurance policy, coverage } & & \\\text { tarting next month } & & \\\hline \text { Paid rent for the current month } & & \\\hline \text { Borrowed cash from the bank for } & & \\\text { business use; a note was signed } & & \\\hline\end{array}$$

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Definitions:

User Costs

The expenses associated with the use of a product or service, including maintenance, repair, and opportunity costs of capital tied up in ownership.

Nonrenewable Resource

A natural resource that cannot be replenished or takes millions of years to form again, such as coal, oil, and natural gas.

Future Profits

This concept pertains to the expected earnings or gains that a business anticipates receiving in the upcoming periods.

Current Extraction

The process of removing natural resources, such as minerals or timber, from the earth at the present time.