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2. Sethco pays for all of the following items in cash, which means that in the journal entry associated with each item, there will be a credit to cash. For each transaction, specify the name of the account that should be DEBITED. Example: Sethco paid $400 to have its logo painted on its new delivery truck Journal Entry: Equipment $400 Cash 400 Answer: The Equipment account should be debited. Transactions:

2. Sethco pays for all of the following items in cash, which means that in the journal entry associated with each item, there will be a credit to cash. For each transaction, specify the name of the account that should be DEBITED. Example: Sethco paid $400 to have its logo painted on its new delivery truck Journal Entry: Equipment $400 Cash 400 Answer: The Equipment account should be debited. Transactions:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Sethco pays for all of the following items in cash, which means that in the journal entry associated with each item, there will be a credit to cash. For each transaction, specify the name of the account that should be DEBITED. Example: Sethco paid $400 to have its logo painted on its new delivery truck Journal Entry: Equipment $400 Cash 400 Answer: The Equipment account should be debited. Transactions: a. Sethco paid $3,000 to install a 3D printer. b. Sethco paid $500 in sales tax associated with the purchase of security system equipment c. Sethco paid 3 months' worth of rent in advance d. Sethco paid $50 to replace a computer chip for the 3D printer. The chip needs to be replaced every time there is an update by the printer's manufacturer, which happens roughly every 18 months. e. Sethco paid $40,000 to add a new bathroom to its store. f. Sethco paid $20,000 to resurface its parking lot g. Sethco paid $500 to have its store deep cleaned.
Transcribed Image Text:2. Sethco pays for all of the following items in cash, which means that in the journal entry associated with each item, there will be a credit to cash. For each transaction, specify the name of the account that should be DEBITED. Example: Sethco paid $400 to have its logo painted on its new delivery truck Journal Entry: Equipment $400 Cash 400 Answer: The Equipment account should be debited. Transactions: a. Sethco paid $3,000 to install a 3D printer. b. Sethco paid $500 in sales tax associated with the purchase of security system equipment c. Sethco paid 3 months' worth of rent in advance d. Sethco paid $50 to replace a computer chip for the 3D printer. The chip needs to be replaced every time there is an update by the printer's manufacturer, which happens roughly every 18 months. e. Sethco paid $40,000 to add a new bathroom to its store. f. Sethco paid $20,000 to resurface its parking lot g. Sethco paid $500 to have its store deep cleaned.
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