xercise 2-6
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Fredo Industries had the following transactions.
1. Borrowed $5,043 from the bank by signing a note.
2. Paid $2,521 cash for a computer.
3. Purchased $454 of supplies on account.
(a) Indicate what accounts are increased and decreased by each transaction.
Debit Analysis
1.
Increase the Asset
Cash
2.
Increase the Asset
3.
Increase the Asset
Credit Analysis
Increase the Liability
Accounts Payable
Common Stock
Decrease the Asset
No Entry
Supplies
Increase the Liability
Accounts Payable
(b) Journalize each transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If
the account titles and enter O for the amounts.)
No. Account Titles and Explanation
1.
Cash
Debit
Credit
5,043
Notes Payable
5,043
2.
CO
2,521
Cash
2,521
3.
Supplies
454
Accounts Payable
454
SHOW LIST OF ACCOUNTS