If the insurance expenses debit for $750 and prepaid insurance expense creditfor $750 this transaction willdecrease net income and assets and equity and no effect on liabilities.Increase assets and decrease net income and equity and no effect on liabilities.Decrease liabilities and equity and increase assets and net incomeDecrease liabilities and assets and rquity ,no effect on net income.Laibilities of a company would not includenotes payable.wages payable .O accounts payable.Accrual revenue when an amount of $325 record as $532 for purchase merchandise on account ,to rectify this transaction using short method as bellowrecord A/P in debit side for $207, and purchase in credit side for $207.record A/P in the debit side for $702, and purchase in credit side for $702.record purchase in the debit side for $207, and A/P in credit side for $207.Record purchase in the debit side for $702, and A/P in the credit side for $702.If the Safe company sold merchandise on 2, April, for $2000 with terms of2/10,N/30 ,and the customer paid $500 on 8, April, the Safa company record thistransaction as bellow:debit cash for $1960 and cash for $2000.sale discount for $40,and credit A/Pdebit cash for $ 490 and cash sale discount for $10, and credit A/R for $500.debit A/P for $500, and credit cash for $490 and cash purchase discount for $10.debit cash for $1960 and cash for $2000.sale discount for $40,and credit A/R.

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Description: If the insurance expenses debit for $750 and prepaid insurance expense creditfor $750 this transaction willdecrease net income and assets and equity and no effect on liabilities.Increase assets and decrease net income and equity and no effect on lia

We know that, Prepaid insurance is a asset account and Insurance expenses is an expense accounts.…

Business

Accounting

If the Safe company sold merchandise on 2, April, for $2000 with terms of 2/10,N/30 ,and the customer paid $500 on 8, April, the Safa company record this transaction as bellow: O debit cash for $1960 and cash for $2000.sale discount for $40,and credit A/P O debit cash for $ 490 and cash sale discount for $10, and credit A/R for $500. O debit A/P for $500, and credit cash for $490 and cash purchase discount for $10. debit cash for $1960 and cash for $2000.sale discount for $40,and credit A/R.

If the Safe company sold merchandise on 2, April, for $2000 with terms of 2/10,N/30 ,and the customer paid $500 on 8, April, the Safa company record this transaction as bellow: O debit cash for $1960 and cash for $2000.sale discount for $40,and credit A/P O debit cash for $ 490 and cash sale discount for $10, and credit A/R for $500. O debit A/P for $500, and credit cash for $490 and cash purchase discount for $10. debit cash for $1960 and cash for $2000.sale discount for $40,and credit A/R.

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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