For each of the following transactions of Lesch & Company, select the appropriate response to indicate the
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Question:
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 is given as an illustration:
Transactions Accounts Effects
Purchased Supplies on account. Debit an asset, Credit a liability
Paid interest on note payable. Answer
Debit a liability, Credit an asset
Paid cash dividend to stockholders. Answer
Debit dividends, Credit an asset
Returned some defective supplies and received a reduction in the amount owed. Answer
Debit a liability, Credit an asset
Made payment to settle note payable. Answer
Debit a liability, Credit an asset
Received an invoice for utilities used. Answer
Debit an expense, Credit a liability
Received payment in advance from client for work to be done next month. Answer
Debit an asset, Credit a liability
Received additional capital contribution from stockholders. Answer
Debit an asset, Credit common stock
Related Book For
Accounting What the Numbers Mean
ISBN: 978-1259535314
11th edition
Authors: David Marshall, Wayne McManus, Daniel Viele
Posted Date: