PAID CASH FOR INSURANCE August 4 Paid cash

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PAID CASH FOR INSURANCE August 4. Paid cash for insurance, $1, 200. Check No.

PAID CASH FOR INSURANCE August 4. Paid cash for insurance, $1, 200. Check No. 2. How is each account classified? Prepaid Insurance is as asset account. Cash is as asset account. 3. How is each classification changed? Assets are increased. Assets are decreased. Debit Normal Balance 1, 200. 00 Cash Debit Normal Balance 1, 200. 00 1. Which accounts are affected? Prepaid Insurance Cash Prepaid Insurance 4. How is each amount entered in the accounts? Assets increase on the debit side. Assets decrease on the credit side. Lesson 4 -2, page 72 © 2000 South-Western Educational Publishing

PAID CASH FOR INSURANCE (continued) August 4. Paid cash for insurance, $1, 200. Check

PAID CASH FOR INSURANCE (continued) August 4. Paid cash for insurance, $1, 200. Check No. 2. 2 3 1 4 1. Write the date. 2. Debit Prepaid Insurance. 3. Credit Cash. 4. Write the source document number. Lesson 4 -2, page 72 © 2000 South-Western Educational Publishing

BOUGHT SUPPLIES ON ACCOUNT August 7. Bought supplies on account from Ling Music Supplies,

BOUGHT SUPPLIES ON ACCOUNT August 7. Bought supplies on account from Ling Music Supplies, $2, 720. 00. Memorandum No. 1. 1. Which accounts are affected? Supplies Accounts Payable—Ling Music Supplies 2. How is each account classified? Supplies is an asset account. Accts. Pay. —Ling Music Supplies is a liability account. 3. How is each classification changed? Assets are increased. Liabilities are increased. Supplies Debit Normal Balance 2, 720. 00 Accts. Pay. —Ling Music Supplies Credit Normal Balance 2, 720. 00 4. How is each amount entered in the accounts? Assets increase on the debit side. Liabilities increase on the credit side. © 2000 South-Western Educational Publishing

BOUGHT SUPPLIES ON ACCOUNT (continued) August 7. Bought supplies on account from Ling Music

BOUGHT SUPPLIES ON ACCOUNT (continued) August 7. Bought supplies on account from Ling Music Supplies, $2, 720. 00. Memorandum No. 1. 2 1 4 3 1. Write the date. 2. Debit Supplies. 3. Credit Accounts Payable—Ling Music Supplies. 4. Write the source document number. © 2000 South-Western Educational Publishing

PAID CASH ON ACCOUNT August 11. Paid cash on account to Ling Music Supplies,

PAID CASH ON ACCOUNT August 11. Paid cash on account to Ling Music Supplies, $1, 360. 00, Check No. 3. Cash Debit Normal Balance 1, 360. 00 2. How is each account classified? Accts. Pay. —Ling Music Supplies is a liability account. Cash is an asset account. 3. How is each classification changed? Liabilities are decreased. Assets are decreased. Credit Normal Balance 1, 360. 00 1. Which accounts are affected? Accounts Payable—Ling Music Supplies Cash Accts. Pay. —Ling Music Supplies 4. How is each amount entered in the accounts? Liabilities decrease on the debit side. Assets decrease on the credit side. Lesson 4 -2, page 74 © 2000 South-Western Educational Publishing

PAID CASH ON ACCOUNT (continued) August 11. Paid cash on account to Ling Music

PAID CASH ON ACCOUNT (continued) August 11. Paid cash on account to Ling Music Supplies, $1, 360. 00, Check No. 3. 2 3 1 4 1. Write the date. 2. Debit Accounts Payable—Ling Music Supplies. 3. Credit Cash. 4. Write the source document number. Lesson 4 -2, page 74 © 2000 South-Western Educational Publishing

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