Indicate whether the account is increased by a debit or credit.

Question

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Answer 1

Question

Chapter 2, Problem 10BE

To determine

Indicate whether the account is increased by a debit or credit.

Expert Solution & Answer

Explanation of Solution

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Ø Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Ø Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, and expenses.

Indicate whether the account is increased by a debit or credit.

Accounts	Debited / Credited (An increase)
Accounts receivable	Debited
Sales revenue	Credited
Equipment	Debited
Common stock	Credited
Notes payable	Credited
Retained earnings	Credited
Inventory	Debited
Rent expense	Debited

(Table 1)

When there is an increase in the value of accounts receivable it is debited, because it is an asset.
When there is an increase in the value of sales revenue it is credited, because it is revenue.
When there is an increase in the value of equipment it is debited, because it is an asset.
When there is an increase in the value of common stock it is credited, because it is a common stock and it is a component of stockholder’s equity.
When there is an increase in the value of notes payable it is credited, because it is a liability.
When there is an increase in the value of retained it is credited, because it is an item of stockholder’s equity. If the closing entry provided by the company shows an increase in the value of retained earnings it is credited.
When there is an increase in the value of inventory it is debited, because it is an asset.
When there is an increase in the value of rent expense it is credited, because it is a liability.

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Answer 2

Question

Chapter 2, Problem 10BE

To determine

Indicate whether the account is increased by a debit or credit.

Expert Solution & Answer

Explanation of Solution

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Ø Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Ø Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, and expenses.

Indicate whether the account is increased by a debit or credit.

Accounts	Debited / Credited (An increase)
Accounts receivable	Debited
Sales revenue	Credited
Equipment	Debited
Common stock	Credited
Notes payable	Credited
Retained earnings	Credited
Inventory	Debited
Rent expense	Debited

(Table 1)

When there is an increase in the value of accounts receivable it is debited, because it is an asset.
When there is an increase in the value of sales revenue it is credited, because it is revenue.
When there is an increase in the value of equipment it is debited, because it is an asset.
When there is an increase in the value of common stock it is credited, because it is a common stock and it is a component of stockholder’s equity.
When there is an increase in the value of notes payable it is credited, because it is a liability.
When there is an increase in the value of retained it is credited, because it is an item of stockholder’s equity. If the closing entry provided by the company shows an increase in the value of retained earnings it is credited.
When there is an increase in the value of inventory it is debited, because it is an asset.
When there is an increase in the value of rent expense it is credited, because it is a liability.

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Answer 3

Question

Chapter 2, Problem 10BE

To determine

Indicate whether the account is increased by a debit or credit.

Expert Solution & Answer

Explanation of Solution

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Ø Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Ø Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, and expenses.

Indicate whether the account is increased by a debit or credit.

Accounts	Debited / Credited (An increase)
Accounts receivable	Debited
Sales revenue	Credited
Equipment	Debited
Common stock	Credited
Notes payable	Credited
Retained earnings	Credited
Inventory	Debited
Rent expense	Debited

(Table 1)

When there is an increase in the value of accounts receivable it is debited, because it is an asset.
When there is an increase in the value of sales revenue it is credited, because it is revenue.
When there is an increase in the value of equipment it is debited, because it is an asset.
When there is an increase in the value of common stock it is credited, because it is a common stock and it is a component of stockholder’s equity.
When there is an increase in the value of notes payable it is credited, because it is a liability.
When there is an increase in the value of retained it is credited, because it is an item of stockholder’s equity. If the closing entry provided by the company shows an increase in the value of retained earnings it is credited.
When there is an increase in the value of inventory it is debited, because it is an asset.
When there is an increase in the value of rent expense it is credited, because it is a liability.

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Answer 4

Question

Chapter 2, Problem 10BE

To determine

Indicate whether the account is increased by a debit or credit.

Expert Solution & Answer

Explanation of Solution

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Ø Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Ø Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, and expenses.

Indicate whether the account is increased by a debit or credit.

Accounts	Debited / Credited (An increase)
Accounts receivable	Debited
Sales revenue	Credited
Equipment	Debited
Common stock	Credited
Notes payable	Credited
Retained earnings	Credited
Inventory	Debited
Rent expense	Debited

(Table 1)

When there is an increase in the value of accounts receivable it is debited, because it is an asset.
When there is an increase in the value of sales revenue it is credited, because it is revenue.
When there is an increase in the value of equipment it is debited, because it is an asset.
When there is an increase in the value of common stock it is credited, because it is a common stock and it is a component of stockholder’s equity.
When there is an increase in the value of notes payable it is credited, because it is a liability.
When there is an increase in the value of retained it is credited, because it is an item of stockholder’s equity. If the closing entry provided by the company shows an increase in the value of retained earnings it is credited.
When there is an increase in the value of inventory it is debited, because it is an asset.
When there is an increase in the value of rent expense it is credited, because it is a liability.

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Answer 5

Chapter 2, Problem 10BE

To determine

Indicate whether the account is increased by a debit or credit.

Expert Solution & Answer

Explanation of Solution

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Ø Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Ø Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, and expenses.

Indicate whether the account is increased by a debit or credit.

Accounts	Debited / Credited (An increase)
Accounts receivable	Debited
Sales revenue	Credited
Equipment	Debited
Common stock	Credited
Notes payable	Credited
Retained earnings	Credited
Inventory	Debited
Rent expense	Debited

(Table 1)

When there is an increase in the value of accounts receivable it is debited, because it is an asset.
When there is an increase in the value of sales revenue it is credited, because it is revenue.
When there is an increase in the value of equipment it is debited, because it is an asset.
When there is an increase in the value of common stock it is credited, because it is a common stock and it is a component of stockholder’s equity.
When there is an increase in the value of notes payable it is credited, because it is a liability.
When there is an increase in the value of retained it is credited, because it is an item of stockholder’s equity. If the closing entry provided by the company shows an increase in the value of retained earnings it is credited.
When there is an increase in the value of inventory it is debited, because it is an asset.
When there is an increase in the value of rent expense it is credited, because it is a liability.

Answer 6

Chapter 2, Problem 10BE

To determine

Indicate whether the account is increased by a debit or credit.

Expert Solution & Answer

Explanation of Solution

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Ø Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Ø Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, and expenses.

Indicate whether the account is increased by a debit or credit.

Accounts	Debited / Credited (An increase)
Accounts receivable	Debited
Sales revenue	Credited
Equipment	Debited
Common stock	Credited
Notes payable	Credited
Retained earnings	Credited
Inventory	Debited
Rent expense	Debited

(Table 1)

When there is an increase in the value of accounts receivable it is debited, because it is an asset.
When there is an increase in the value of sales revenue it is credited, because it is revenue.
When there is an increase in the value of equipment it is debited, because it is an asset.
When there is an increase in the value of common stock it is credited, because it is a common stock and it is a component of stockholder’s equity.
When there is an increase in the value of notes payable it is credited, because it is a liability.
When there is an increase in the value of retained it is credited, because it is an item of stockholder’s equity. If the closing entry provided by the company shows an increase in the value of retained earnings it is credited.
When there is an increase in the value of inventory it is debited, because it is an asset.
When there is an increase in the value of rent expense it is credited, because it is a liability.

Answer 7

Chapter 2, Problem 10BE

To determine

Indicate whether the account is increased by a debit or credit.

Answer 8

Expert Solution & Answer

Explanation of Solution

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Ø Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Ø Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, and expenses.

Indicate whether the account is increased by a debit or credit.

Accounts	Debited / Credited (An increase)
Accounts receivable	Debited
Sales revenue	Credited
Equipment	Debited
Common stock	Credited
Notes payable	Credited
Retained earnings	Credited
Inventory	Debited
Rent expense	Debited

(Table 1)

When there is an increase in the value of accounts receivable it is debited, because it is an asset.
When there is an increase in the value of sales revenue it is credited, because it is revenue.
When there is an increase in the value of equipment it is debited, because it is an asset.
When there is an increase in the value of common stock it is credited, because it is a common stock and it is a component of stockholder’s equity.
When there is an increase in the value of notes payable it is credited, because it is a liability.
When there is an increase in the value of retained it is credited, because it is an item of stockholder’s equity. If the closing entry provided by the company shows an increase in the value of retained earnings it is credited.
When there is an increase in the value of inventory it is debited, because it is an asset.
When there is an increase in the value of rent expense it is credited, because it is a liability.