Bill purchased office supplies for $500 cash. What is the effect on accounts?
Cash account increases; Accounts payable increases.
Cash account increases; Supplies account increases.
Supplies account increases; Cash account decreases.
Supplies account increases; Owner’s capital account increases.
Net income is $29,000. Beginning capital balance was $34,000. Ending capital balance was $55,000. No capital contributions were made by the owner during the year. What amount of drawings was made?
Debit refers to the right side of the T-account, and credit refers to the left side.
A trial balance is the list of all a company’s accounts along with their account numbers.
Equipment is sold for cash in an amount equal to the cost of the equipment recorded on the books. How does this sale affect the accounting equation?
One asset increases; one asset decreases.
Assets increase; liabilities increase.
Assets increase; liabilities decrease.
Assets increase; owner’s equity increases.
A trial balance is a list of all of the accounts with their balances.