Reference no: EM131881192

To increase an asset account, you need to ____________ the account.

Debit

Credit

A company purchased supplies for $400 on account. Prepare the general journal entry.

DEBIT: Supplies for $400; CREDIT: Cash for $400

DEBIT: Supplies for $400; CREDIT: Accounts Payable for $400

DEBIT: Cash for $400; CREDIT: Supplies for $400

DEBIT: Accounts Payable for $400; CREDIT: Supplies for $400

To decrease an expense account, you need to ____________ the account.

Debit

Credit

A four-year insurance policy in the amount of $20,000 was purchased two years ago. What is the adjusting entry to record insurance expense for the current year?

DEBIT: Insurance Expense for $20,000; CREDIT: Prepaid Insurance for $20,000

DEBIT: Insurance Expense for $5,000; CREDIT: Prepaid Insurance for $5,000

DEBIT: Prepaid Insurance for $20,000; CREDIT: Insurance Expense for $20,000

DEBIT: Prepaid Insurance for $5,000; CREDIT: Insurance Expense for $5,000