RECEIVED CASH FROM SALES August 12 Received cash

RECEIVED CASH FROM SALES August 12. Received cash from sales, $325. 00. Tape No. 12. 1. Which accounts are affected? Cash Sales 2. How is each account classified? Cash is as asset account. Sales is as revenue account. 3. How is each classification changed? Assets are increased. Revenues are increased. 4. How is each amount entered in the accounts? Assets increase on the debit side. Revenues increase on the credit side. Cash Debit Normal Balance 325. 00 Sales Credit Normal Balance 325. 00 Lesson 4 -3, page 76 © 2000 South-Western Educational Publishing

RECEIVED CASH FROM SALES (continued) August 12. Received cash from sales, $325. 00. Tape No. 12. 3 1 4 2 1. Write the date. 2. Debit Cash. 3. Credit Sales. 4. Write the source document number. Lesson 4 -3, page 76 © 2000 South-Western Educational Publishing

SOLD SERVICES ON ACCOUNT August 12. Sold services on account to Kids Time, $200. Sales Invoice No. 1. 1. Which accounts are affected? Accounts Receivable—Kids Time Sales Accounts Rec. —Kids Time Debit Normal Balance 200. 00 2. How is each account classified? Accounts Receivable—Kids Time is an asset account. Sales is as revenue account. 3. How is each classification changed? Assets are increased. Revenues are increased. 4. How is each amount entered in the accounts? Assets increase on the debit side. Revenues increase on the credit side. Sales Credit Normal Balance 200. 00 Lesson 4 -3, page 77 © 2000 South-Western Educational Publishing

SOLD SERVICES ON ACCOUNT (continued) August 12. Sold services on account to Kids Time, $200. Sales Invoice No. 1. 2 1 4 3 1. Write the date. 2. Debit Cash. 3. Credit Sales. 4. Write the source document number. Lesson 4 -3, page 77 © 2000 South-Western Educational Publishing

PAID CASH FOR AN EXPENSE August 12. Paid cash for rent, $250. 00. Check No. 4. 2. How is each account classified? Rent Expense is an expense account. Cash is an asset account. 3. How is each classification changed? Expenses are increased. Assets are decreased. Debit Normal Balance 250. 00 Cash Debit Normal Balance 250. 00 1. Which accounts are affected? Rent Expense Cash Rent Expense 4. How is each amount entered in the accounts? Expenses increase on the debit side. Assets decrease on the credit side. Lesson 4 -3, page 78 © 2000 South-Western Educational Publishing

PAID CASH FOR AN EXPENSE (continued) August 12. Paid cash for rent, $250. 00. Check No. 4. 2 3 1 4 1. Write the date. 2. Debit Rent Expense. 3. Credit Cash. 4. Write the source document number. Lesson 4 -3, page 78 © 2000 South-Western Educational Publishing

RECEIVED CASH ON ACCOUNT August 12. Received cash on account from Kids Time, $100. Receipt No. 2. 1. Which accounts are affected? Cash Accounts Receivable—Kids Time Cash Debit Normal Balance 100. 00 2. How is each account classified? Cash is an asset account. Accounts Rec. —Kids Time 4. How is each amount entered in the accounts? Assets increase on the debit side. Assets decrease on the credit side. Debit Normal Balance 100. 00 3. How is each classification changed? Assets are increased. Assets are decreased. Lesson 4 -3, page 79 © 2000 South-Western Educational Publishing

RECEIVED CASH ON ACCOUNT (continued) August 12. Received cash on account from Kids Time, $100. Receipt No. 2. 3 1 4 2 1. Write the date. 2. Debit Cash. 3. Credit Accts. Rec. —Kids Time. 4. Write the source document number. Lesson 4 -3, page 79 © 2000 South-Western Educational Publishing

PAID CASH TO OWNER FOR PERSONAL USE August 12. Paid cash to owner for personal use, $100. Check No. 6. Debit Normal Balance 100. 00 2. How is each account classified? Barbara Treviño, Drawing is an owner’s equity account. Cash is an asset account. 3. How is each classification changed? Withdrawals are increased. (This results in a decrease in owner’s equity. ) Assets are decreased. Cash Debit Normal Balance 4. How is each amount entered in the accounts? Owner’s equity accounts decrease on the debit side. Assets decrease on the credit side. 100. 00 1. Which accounts are affected? Barbara Treviño, Drawing Cash Barbara Treviño, Drawing Lesson 4 -3, page 80 © 2000 South-Western Educational Publishing

PAID CASH TO OWNER FOR PERSONAL USE August 12. Paid cash to owner for personal use, $100. Check No. 6. 2 1 4 3 1. Write the date. 2. Debit Barbara Treviño, Drawing. 3. Credit Cash. 4. Write the source document number. Lesson 4 -3, page 80 © 2000 South-Western Educational Publishing