Principles of Accounting 110
Debit and Credit Demonstration Problems

Batchelor Button Problem 2

Problem 1
Required: Some typical transactions for a small business have been analyzed to determine their effect on specific accounts in the company's general ledger. Match each of the transactions to a line in the chart.

Transaction
Number 		 Assets Liabilities and Equity
Cash + A/R + Supplies = A/P + N/P + Capital
1. + $50,000         + $50,000
2. + 40,000       + 40,000  
3.     + 3,000 + 3,000    
4.   + 10,000       + 10,000
5. - 5,000         - 5,000
6.     - 500     - 500
7. - 1,000     - 1,000    
  1. Salaries were paid to employees.
  2. Supplies were purchased on account.
  3. Cash was borrowed from a bank and a note payable was signed.
  4. Supplies were issued and used.
  1. An attorney invested cash to open a  law office.
  2. Cash was paid on account to the supplies vendor.
  3. A bill was sent for services that were performed for a customer.