CREDIT columns for the accounting values that are affected by the followin
transactions: (Item No. 1 is answered for your guide).
Value Received Value Parted
Transactions
(DEBIT) with (Credit)
Payment of rental
Rent Expense
Cash
2.
3.
4.
Initial investment by S. Ty
Bought a car on account
Rendered professional service on account.
Cash withdrawal by S. Ty
Collection from client’s account
5.
6.
7.
8.
Rendered professional service for cash
Issued a note for borrowed money.
Additional investment by S. Ty
9.
10. Sold an old car for cash
11. Received a promissory note from a client
12. Payment of account to a supplier
13. Received a promissory note in exchange for
li
Answer:
Initial investment by S. Ty
Value received: cash
Value parted: capital
Bought a car on account
Value received: equipment – car
Value parted: accounts payable
Rendered professional service on account.
Value received: accounts receivable
Value parted: service income
Cash withdrawal by S. Ty
Value received: drawings
Value parted: cash
Collection from client’s account
Value received: cash
Value parted: accounts receivable
Rendered professional service for cash
Value received: cash
Value parted: service income
Issued a note for borrowed money.
Value received: cash
Value parted: notes payable
Additional investment by S. Ty
Value received: cash
Value parted: capital
Sold an old car for cash
Value received: cash
Value parted: equipment – car
Received a promissory note from a client
Value received: notes receivable
Value parted: service income/sales
Payment of account to a supplier
Value received: accounts payable
Value parted: cash
Received a promissory note in exchange for…
Value received: notes receivable
Value parted: service income/sales
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