Chapter 4.2 Debit and Credit Theory

1. Chapter 4.2Debit and Credit Theory

2. $ $ $ Debit and Credit Theory 4.2 Transaction 1The company purchases $200 of supplies from Packham Products to be paid for later. Supplies A/P Packham Products 200 200 Dr Cr Assets Liabilities+Equity $ $

3. $ Debit and Credit Theory 4.2 Transaction 2The company pays $500 to Dini Bros. in partial payment of the amount owed to them. Cash A/P Dini Bros. 500 500 Cr Dr Assets Liabilities+Equity $ $ $

4. $ Debit and Credit Theory 4.2 Transaction 3The company receives $200 cash from R. Van Loon in partial payment of her debt. Cash 200 Dr A/R—R. Van Loon 200 Cr Assets Liabilities+Equity $ $

5. $ $ $ Debit and Credit Theory 4.2 Transaction 4A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed. Cash B. Rissien, Capital 400 400 Dr Cr Assets Liabilities+Equity $ $

6. $ $ $ Debit and Credit Theory 4.2 Transaction 5 A used truck costing $8 000 is purchased from Dini Bros. A cash down payment of $2 500 is made; the balance is to be paid later. Truck A/P Dini Bros. 5 500 8 000 Dr Cr Cash 2 500 Assets Liabilities+Equity Cr $ $ $

7. $ $ $ Debit and Credit Theory 4.2 Transaction 6A delivery service is provided for R. Van Loon customer at a price of $350. The customer agrees to pay within 60 days. A/R—R. Van Loon B. Rissien, Capital 350 350 Dr Cr Assets Liabilities+Equity $ $

8. $ Debit and Credit Theory 4.2 Transaction 7One of the lifting machines (equipment) breaks down. The company spends $650 cash to have the machine repaired. B. Rissien, Capital Cash 650 650 Cr Dr Assets Liabilities+Equity $ $ $