T-Account Labels

Q: Which accounts are affected in each of the following transactions?

1. Invested cash in the business - $4,000
2. Bought equipment for cash - $500
3. Bought equipment on account - $800
4. Paid cash on account for equipment purchased in transaction - $300
5. Withdrew cash for personal use - $700

Comments for T-Account Labels

Click here to add your own comments

T-ACCOUNT LABELS
by: Anonymous

1. cash is debited/increased by $4,000
Owner's equity is credited/increased by $4,000

2. cash is credited/decrease by $500.00
equipment debited/increase by $500.00

3. A/P is credited/increased by $800.00
equitment debited/decreased by $800.00

4. cash is credited/decreased by $300.00
A/P is debited/decreased by $00.00

5. cash is credited/decreased by $700.00
owner's drawing/equity is debited/decreased
by $700.00