Chapter 2, Problem 2.3BE

(1)

To determine

Procedure for debiting and crediting an account:

• Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.
• Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.

All transactions affect the accounting equation that is displayed below. The accounting equation should always remain in balance at the time of recording a business transaction:

$\boxed{\text{Asset = Liabilities + Stockholders' equity}}$

To prepare: The journal entry for the transaction as on June 1.

(2)

To determine

To prepare: The journal entry for the transaction as on June 2.

(3)

To determine

To prepare: The journal entry for the transaction as on June 3.

(4)

To determine

To prepare: The journal entry for the transaction as on June 12.