Item Financial Statement Element for Account to be Debited Financial Statement Element for Account to be Credited A cash dividend is declared and paid to shareholders. Equity Current Assets A bill for electricity used in the current month is received but not payable until the following month. Answer 1 Question 1 Current Assets Income – Gains Non-current Liabilities Income – Revenue Non-current Assets Expenses – Loss Current Liabilities Expenses Equity   Answer 2 Question 1 Income – Gains Current Assets Expenses – Loss Non-current Assets Non-current Liabilities Equity Current Liabilities Expenses Income – Revenue   Products are sold to customers on 30-days’ credit Answer 3 Question 1 Non-current Assets Expenses – Loss Equity Current Assets Income – Gains Income – Revenue Non-current Liabilities Current Liabilities Expenses Answer 4 Question 1 Expenses – Loss Expenses Income – Revenue Non-current Liabilities Equity Income – Gains Non-current Assets Current Liabilities Current Assets A customer makes a deposit on a special order that will not be manufactured until next year. Answer 5 Question 1 Expenses – Loss Income – Gains Non-current Assets Income – Revenue Non-current Liabilities Current Liabilities Current Assets Expenses Equity Answer 6 Question 1 Current Assets Equity Non-current Liabilities Income – Gains Current Liabilities Income – Revenue Non-current Assets Expenses Expenses – Loss   Cash dividends declared but not yet paid. Answer 7 Question 1 Non-current Liabilities Current Liabilities Income – Revenue Equity Income – Gains Non-current Assets Current Assets Expenses – Loss Expenses   Answer 8 Question 1 Current Assets Expenses – Loss Expenses Non-current Liabilities Income – Gains Current Liabilities Equity Income – Revenue Non-current Assets   A shareholder invests money in a business by making a loan with commercial terms to the business. Answer 9 Question 1 Income – Revenue Expenses Current Liabilities Non-current Assets Current Assets Income – Gains Non-current Liabilities Equity Expenses – Loss

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Financial Statement Element for Account to be Debited

Financial Statement Element for Account to be Credited

A cash dividend is declared and paid to shareholders.

Equity

Current Assets

A bill for electricity used in the current month is received but not payable until the following month.

Answer 1 Question 1 Current Assets Income – Gains Non-current Liabilities Income – Revenue Non-current Assets Expenses – Loss Current Liabilities Expenses Equity

 

Answer 2 Question 1 Income – Gains Current Assets Expenses – Loss Non-current Assets Non-current Liabilities Equity Current Liabilities Expenses Income – Revenue

 

Products are sold to customers on 30-days’ credit

Answer 3 Question 1 Non-current Assets Expenses – Loss Equity Current Assets Income – Gains Income – Revenue Non-current Liabilities Current Liabilities Expenses

Answer 4 Question 1 Expenses – Loss Expenses Income – Revenue Non-current Liabilities Equity Income – Gains Non-current Assets Current Liabilities Current Assets

A customer makes a deposit on a special order that will not be manufactured until next year.

Answer 5 Question 1 Expenses – Loss Income – Gains Non-current Assets Income – Revenue Non-current Liabilities Current Liabilities Current Assets Expenses Equity

Answer 6 Question 1 Current Assets Equity Non-current Liabilities Income – Gains Current Liabilities Income – Revenue Non-current Assets Expenses Expenses – Loss

 

Cash dividends declared but not yet paid.

Answer 7 Question 1 Non-current Liabilities Current Liabilities Income – Revenue Equity Income – Gains Non-current Assets Current Assets Expenses – Loss Expenses

 

Answer 8 Question 1 Current Assets Expenses – Loss Expenses Non-current Liabilities Income – Gains Current Liabilities Equity Income – Revenue Non-current Assets

 

A shareholder invests money in a business by making a loan with commercial terms to the business.

Answer 9 Question 1 Income – Revenue Expenses Current Liabilities Non-current Assets Current Assets Income – Gains Non-current Liabilities Equity Expenses – Loss

 

 

Expert Solution
Step 1: Introduction:

A whole accounting process revolves around recording of business transactions, summarise general ledger balances and then preparation of financial statements on that basis. Recording of business transactions into journal is very first step in accounting cycle process. 

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