AFFECTED DECREASE CREDIT AND TYPE OF ACCOUNT Jan 1, 2012 Owner invests $10,000 Cash Account Increase Asset Debit $10,000 (example:) into her own business Owner’s Equity Account Credit $10,000 from personal savings and Increase Equity deposits the money into Account the company bank account Jan 4, 2012 Company purchases Computer Increase Asset Debit $2,000 computer equipment - Account Account Credit $2,000 $2000 - cheque Cash Account Decrease Asset Account Jan 6, 2012 Company pays rent $950 _Rent Expense Increase Debit $950 by cheque _Cash Account Expense Credit $950 Account Decrease Asset Account Jan 7, 2012 Purchase of store _Inventory Increase Asset Debit $1,200 inventory for $1200 on Account Account _ Credit $1,200 credit Accounts Increase Payable_ Liability Account Jan 8, 2012 Purchase of used vehicle _Vehicle Increase Asset Debit $12,000 for $12,000, putting Account_ Account Credit $4,000 $4,000 down and taking a _Cash Decrease Asset Credit $8,000 bank loan for the Account___ Account remainder Bank Increase Loan_____ Liability Account Jan 10, Paid $500 against bank _Bank Decrease Debit $500 2012 loan Loan________ Liability Credit $500 __Cash Account Account_____ Decrease Asset Account__ Jan 12, Owner takes $1,200 from _Owner’s Draw Increase Contra- Debit $1,200 2012 business account for Account_ Equity Account Credit $1,200 personal use __Cash Decrease Asset Account_____ Account DATE TRANSACTION ACCOUNTS INCREASE / DEBIT / AMOUNT AFFECTED DECREASE CREDIT AND TYPE OF ACCOUNT Jan 13, Cash sales to date are __Cash Increase Asset Debit $1,500 2012 $1,500 Account_____ Account Credit $1,500 Sales Increase Revenue____ Revenue Account Jan 14, Credit sales to date are Accounts _Increase Asset Debit $1,400 2012 $1,400 Receivable Account Credit $1,400 __Sales _Increase Revenue__ Revenue Account Jan 16, A Customer pays down __Cash _Increase Asset Debit $300 2012 their account $300 Account__ Account__ Credit $300 _Accounts _Decrease Asset Receivable Account__ Jan 17, A sales staff member pays _Fuel _Increase Debit $120 2012 for fuel for the company Expense___ Expense Credit $120 vehicle - $120, on account _Accounts Account_ Payable _Increase Liability Account_ Jan 18, A utility bill is received __Utility _Increase Debit $130 2012 for $130, and entered into Expense__ Expense Credit $130 the accounts __Accounts Account_ Payable_ _Increase Liability Account_ Jan 19, A marketing expense is _Marketing _Increase Debit $180 2012 paid in cash - $180 Expense_ Expense Credit $180 __Cash Account_ Account___ _Decrease Asset Account__ Jan 20, A contractor is paid for _Repairs _Increase Debit $250 2012 repairing the ceiling - Expense__ Expense Credit $250 $250 __Cash Account_ Account___ _Decrease Asset Account__ Jan 21, Furniture is purchased for _Furniture _Increase Asset Debit $2,500 2012 $2500 - $400 is paid cash; Account__ Account__ Credit $400 the rest is on account __Cash _Decrease Asset Credit Account_____ Account__ __Accounts _Increase Payable__ Liability Account_