Identify whether a debit or credit yields the indicated change for each of the following accounts:
a. To increase Store Equipment
b. To increase Owner Withdrawals
c. To decrease Cash
d. To increase Utilities Expense
e. To increase Fees Earned
f. To decrease Unearned Revenue
g. To decrease Prepaid Insurance
h. To increase Notes Payable
i. To decrease Accounts Receivable
j. To increase Owner Capital
debit,credit
To determine whether a debit or credit yields the indicated change for each of the accounts, you can use the basic rules of debit and credit in accounting.
In general, debits increase assets and expenses, and decrease liabilities, owner's equity, and revenue. Credits, on the other hand, decrease assets and expenses, and increase liabilities, owner's equity, and revenue.
Let's go through each account to identify whether a debit or credit would yield the indicated change:
a. To increase Store Equipment:
To increase an asset account like Store Equipment, you would debit it. So, a debit to Store Equipment would yield the indicated change.
b. To increase Owner Withdrawals:
Owner Withdrawals represent a decrease in the owner's equity. Therefore, you would debit Owner Withdrawals to increase it.
c. To decrease Cash:
Cash is an asset account, and a decrease can be achieved by crediting the account. So, a credit to Cash would yield the indicated change.
d. To increase Utilities Expense:
Utilities Expense is an expense account, and expenses are increased by debiting them. Therefore, a debit to Utilities Expense would yield the indicated change.
e. To increase Fees Earned:
Fees Earned is a revenue account, and revenue is increased by crediting it. So, a credit to Fees Earned would yield the indicated change.
f. To decrease Unearned Revenue:
Unearned Revenue is a liability account, and a decrease can be achieved by debiting it. Thus, a debit to Unearned Revenue would yield the indicated change.
g. To decrease Prepaid Insurance:
Prepaid Insurance is an asset account representing a prepayment, and a decrease can be achieved by crediting the account. Therefore, a credit to Prepaid Insurance would yield the indicated change.
h. To increase Notes Payable:
Notes Payable is a liability account, and you would increase it by crediting the account. So, a credit to Notes Payable would yield the indicated change.
i. To decrease Accounts Receivable:
Accounts Receivable is an asset account, and a decrease can be achieved by crediting the account. Hence, a credit to Accounts Receivable would yield the indicated change.
j. To increase Owner Capital:
Owner Capital represents an increase in the owner's equity. Therefore, you would credit Owner Capital to increase it.
Remember, this is a general guide. It's important to refer to your specific accounting rules or consult with an accountant for the correct treatment in your accounting system.