Question

Journalize the following accounting transactions with the correct Debit and Correct Credit entry.

- borrowed money from the bank

- paid off the loan from the bank

- bought equipment on account

-paid off the equipment bought on account

- Mr. Tucker invested money in his sole - proprietorship

- paid the insurance bill

- bought supplies for cash

-made cash sales for the day

- made sales on account

- collected money from sales on account

Answer 1

	Increase in assets are debited and increase in liabilities are credited and vice versa.
		Debit	Credit
	- borrowed money from the bank	Cash	Long term Debt
	- paid off the loan from the bank	Long term Debt	Cash
	- bought equipment on account	Equipment	Accounts Payable
	-paid off the equipment bought on account	Accounts Payable	Cash
	- Mr. Tucker invested money in his sole - proprietorship	Cash	Mr. Tucker Capital
	- paid the insurance bill	Prepaid insurance	Cash
	- bought supplies for cash	Supplies	Cash
	-made cash sales for the day	Cash	Sales
	- made sales on account	Accounts Receivable	Sales
	- collected money from sales on account	Cash	Accounts Receivable