account is a debit or a credit.

E$2-7$ Below are several external transactions for Hokies Company.

Example: Purchase equipment in exchange for cash.

Pay a cash dividend.

Account

Debited

Equipment

Pay rent in advance for the next three months.

Provide services to customers on account.

Purchase office supplies on account.

Pay salaries for the current month.

Issue common stock in exchange for cash.

Collect cash from customers for services

provided in $(3)$ above.

Borrow cash from the bank and sign a note.

Pay for the current month's utilities.

Pay for office supplies purchased in $(4)$ above.

Associate det

credits with e

transactions

Hokies uses the following accounts:

Accounts Payable

Cash

Prepaid Rent

Common Stock

Salaries Payable

Equipment

Supplies

Rent Expense

Notes Payable

Salaries Expense

Account

Credited

Cash

Accounts Receivable

Utilities Expense

Service Revenue

Retained Earnings

Dividends

Required:

Indicate which accounts should be debited and which should be credited.