Can someone correct these for me thanks I'll appreciate it very much....
Identify whether a debit or credit yields the indicated change for each of the following accounts:
a. To increase Store Equipment
My answer: Debit
b. To increase Owner Withdrawals
My answer: Credit
c. To decrease Cash
My answer:Debit
d. To increase Utilities Expense
Credit
e. To increase Fees Earned
My answer: Debit
f. To decrease Unearned Revenue
My answer: Debit
g. To decrease Prepaid Insurance
My answer: Credit
h. To increase Notes Payable
My answer: Credit
i. To decrease Accounts Receivable
My answer:Credit
j. To increase Owner Capital
My answer: Credit
a. To increase Store Equipment
Your answer: Debit
Corrected answer: Debit
b. To increase Owner Withdrawals
Your answer: Credit
Corrected answer: Debit
c. To decrease Cash
Your answer: Debit
Corrected answer: Credit
d. To increase Utilities Expense
Your answer: Credit
Corrected answer: Debit
e. To increase Fees Earned
Your answer: Debit
Corrected answer: Credit
f. To decrease Unearned Revenue
Your answer: Debit
Corrected answer: Credit
g. To decrease Prepaid Insurance
Your answer: Credit
Corrected answer: Debit
h. To increase Notes Payable
Your answer: Credit
Corrected answer: Credit
i. To decrease Accounts Receivable
Your answer: Credit
Corrected answer: Debit
j. To increase Owner Capital
Your answer: Credit
Corrected answer: Credit
To identify whether a debit or credit yields the indicated change for each account, we need to understand the rules of double-entry bookkeeping.
In double-entry bookkeeping, every transaction must have at least two entries, one as a debit and the other as a credit. Debits and credits have specific meanings:
- Debit: Increases assets and expenses, and decreases liabilities, equity, and revenues.
- Credit: Decreases assets and expenses, and increases liabilities, equity, and revenues.
Now, let's go through each account and determine whether a debit or credit would yield the indicated change:
a. To increase Store Equipment:
You answered: Debit
Correct Answer: Debit
Explanation: Since increasing Store Equipment is an increase in an asset account, we would use a debit entry.
b. To increase Owner Withdrawals:
You answered: Credit
Correct Answer: Debit
Explanation: When the owner makes a withdrawal, it decreases the owner's equity (specifically, the owner's capital account). Therefore, we need to debit the Owner Withdrawals account.
c. To decrease Cash:
You answered: Debit
Correct Answer: Credit
Explanation: A decrease in the Cash account represents an outflow of cash. Using a credit entry will decrease the asset account.
d. To increase Utilities Expense:
You answered: Credit
Correct Answer: Debit
Explanation: Increasing an expense account, such as Utilities Expense, requires a debit entry.
e. To increase Fees Earned:
You answered: Debit
Correct Answer: Credit
Explanation: Fees Earned represents revenue, and revenue accounts increase with credit entries.
f. To decrease Unearned Revenue:
You answered: Debit
Correct Answer: Credit
Explanation: Decreasing the liability account Unearned Revenue requires a credit entry.
g. To decrease Prepaid Insurance:
You answered: Credit
Correct Answer: Debit
Explanation: Prepaid Insurance is an asset account, and decreasing it requires a debit entry.
h. To increase Notes Payable:
You answered: Credit
Correct Answer: Credit
Explanation: Increasing a liability account, such as Notes Payable, requires a credit entry.
i. To decrease Accounts Receivable:
You answered: Credit
Correct Answer: Debit
Explanation: Decreasing the asset account Accounts Receivable requires a debit entry.
j. To increase Owner Capital:
You answered: Credit
Correct Answer: Credit
Explanation: When the owner contributes additional capital, the Owner Capital account increases, which requires a credit entry.
Remember, these answers are based on the general rules of double-entry bookkeeping, but there may be exceptions depending on the specific accounting practices used.