Chapter 9, Problem 9.6AP

(a)

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 determine: Prepare the journal entries for the month of October and adjusting entries for accrued interest receivable.

(b)

To determine

The balances in receivable accounts at October 1.

(c)

To determine

To prepare: The balance sheet presentation of the receivable accounts at October 31.