For each of the following transactions of Lesch & Company, select the appropriate response to indicate the debits and credits to be made. The correct answer for Transaction $(1)$ is given as an illustration:

Transactions Accounts Effects

$1.$ Purchased Supplies on account. Debit an asset, Credit a liability

$2.$ Paid interest on note payable. Answer

Debit a liability, Credit an asset

$3.$ Paid cash dividend to stockholders. Answer

Debit dividends, Credit an asset

$4.$ Returned some defective supplies and received a reduction in the amount owed. Answer

Debit a liability, Credit an asset

$5.$ Made payment to settle note payable. Answer

Debit a liability, Credit an asset

$6.$ Received an invoice for utilities used. Answer

Debit an expense, Credit a liability

$7.$ Received payment in advance from client for work to be done next month. Answer

Debit an asset, Credit a liability

$8.$ Received additional capital contribution from stockholders. Answer

Debit an asset, Credit common stock

Answer rating: 100% (QA)

Here are the correct responses for each transaction Paid interest on note payable Debit an expense I... View the full answer