INSTRUCTIONS.

IDENTIFY THE MANNER IN WHICH THE EACH OF THE INCREASES OR DECREASES

OF THE ACCOUNT WOULD BE RECORDED.

ANSWERS
　
DEBIT CREDIT
0. Decrease in Supplies 　 /
1. Increase in Accounts Receivable 　 　
2. Cash is decreased 　 　
3. Incurred Salaries Expense 　 　
4. Decrease in Notes Receivable 　 　
5. Increase in Accounts Payable 　 　
6. Prepaid Rent is increased 　 　
7. Increase in the value of Land 　 　
8. Service Revenue is increased 　 　
9. Capital is increased 　 　

INSTRUCTIONS. Indicate the effect of each of the following transactions for the current month
on assets, liabilities, and owner’s equity by inserting “+” for increase, “-“ for decrease, on the
corresponding columns.

ANSWERS
　
A L O/E
0. Received cash as initial investment + 　 +
1. Collected cash on account from customers 　 　 　
2. Purchased land by issuing a note payable 　 　 　
3. Paid rent for the month 　 　 　
4. Owner's withdrawal 　 　 　
5. Paid creditors on account 　 　 　
6. Received cash from services 　 　 　
7. Issued receipts for services rendered on account 　 　 　
8. Paid employee wages 　 　 　
9. Purchased equipment for cash 　 　 　

10. Purchased equipment by paying cash as downpayment and issued a 　

note for the remaining balance 　 　
 11. Paid interest due on note payable 　 　 　

12. Paid first installment on the non- interest bearing note

　 　 　
payable

INSTRUCTIONS. Listed below are a summary of accounts used by Wasabe Inc. in recording
financial transactions in the company. Indicate the account(s) to be debited and credited during
each transaction. Write the letter of your answer on the corresponding columns.
A. Cash E. Wasabe, Capital I. Accounts Receivable
B. Accounts Payable F. Note Payable J. Equipment
C. Land G. Wasabe, Withdrawal K. Interest Expense
D. Supplies H. Wages Expense L. Supplies Expense
M. Service Income

ANSWERS
　
DEBIT CREDIT
0. Shin Wasabe invested cash into the business A　 E　
1. Received cash for services rendered 　 　
2. Purchased land by issuing a note payable 　 　
3. Puchased supplies on account 　 　
4. Shin Wasabe withdrew cash from the business 　 　
5. Paid creditors on account 　 　
6. Received cash from services rendered on account 　 　
7. Issued receipts for services rendered on account 　 　
8. Paid employee wages 　 　
9. Purchased equipment for cash 　 　

10. Purchased equipment by paying cash as downpayment and issued a note for
the remaining balance 　 　

11. Paid interest due on note payable 　 　

12. Paid first installment on the non- interest bearing note payable 　 　
13. Recorded supplies used during the period