Question

instructions
using the following account titles, type the accounts affected by each transaction below
cash
accounts receivable—darnell lee
supplies
prepaid insurance
accounts payable—gable supplies
mary jacobs, capital
mary jacobs, drawing
sales
advertising expense
miscellaneous expense
rent expense
repair expense
utilities expense

transactions\taccount debited\taccount credited

1. paid cash for advertising\t\t
2. paid cash for repairs.\t\t
3. received cash from owner as an investment.\t\t
4. paid cash for miscellaneous expense\t\t
5. bought supplies on account from gable supplies.\t\t
6. paid cash on account to gable supplies\t\t
7. paid cash for water bill\t\t
8. paid cash for supplies.\t\t
9. paid cash for rent\t\t
10. sold services on account to darnell lee\t\t
11. received cash from sales\t\t
12. paid cash for insurance\t\t

Explanation:

Step1: Analyze Transaction 1

Paid cash for advertising → Debit expense, credit cash.
Account Debited: Advertising Expense; Account Credited: Cash

Step2: Analyze Transaction 2

Paid cash for repairs → Debit expense, credit cash.
Account Debited: Repair Expense; Account Credited: Cash

Step3: Analyze Transaction 3

Cash from owner’s investment → Debit cash, credit capital.
Account Debited: Cash; Account Credited: Mary Jacobs, Capital

Step4: Analyze Transaction 4

Paid cash for miscellaneous expense → Debit expense, credit cash.
Account Debited: Miscellaneous Expense; Account Credited: Cash

Step5: Analyze Transaction 5

Supplies on account from Gable → Debit supplies, credit payable.
Account Debited: Supplies; Account Credited: Accounts Payable—Gable Supplies

Step6: Analyze Transaction 6

Paid cash to Gable → Debit payable, credit cash.
Account Debited: Accounts Payable—Gable Supplies; Account Credited: Cash

Step7: Analyze Transaction 7

Paid cash for water bill → Debit utilities expense, credit cash.
Account Debited: Utilities Expense; Account Credited: Cash

Step8: Analyze Transaction 8

Paid cash for supplies → Debit supplies, credit cash.
Account Debited: Supplies; Account Credited: Cash

Step9: Analyze Transaction 9

Paid cash for rent → Debit expense, credit cash.
Account Debited: Rent Expense; Account Credited: Cash

Step10: Analyze Transaction 10

Services on account to Darnell → Debit receivable, credit sales.
Account Debited: Accounts Receivable—Darnell Lee; Account Credited: Sales

Step11: Analyze Transaction 11

Cash from sales → Debit cash, credit sales.
Account Debited: Cash; Account Credited: Sales

Step12: Analyze Transaction 12

Paid cash for insurance → Debit prepaid insurance, credit cash.
Account Debited: Prepaid Insurance; Account Credited: Cash

Answer:

Transactions	Account Debited	Account Credited
2 Paid cash for repairs	Repair Expense	Cash
3 Received cash from owner as an investment	Cash	Mary Jacobs, Capital
4 Paid cash for miscellaneous expense	Miscellaneous Expense	Cash
5 Bought supplies on account from Gable Supplies	Supplies	Accounts Payable—Gable Supplies
6 Paid cash on account to Gable Supplies	Accounts Payable—Gable Supplies	Cash
7 Paid cash for water bill	Utilities Expense	Cash
8 Paid cash for supplies	Supplies	Cash
9 Paid cash for rent	Rent Expense	Cash
10 Sold services on account to Darnell Lee	Accounts Receivable—Darnell Lee	Sales
11 Received cash from sales	Cash	Sales
12 Paid cash for insurance	Prepaid Insurance	Cash