Reference no: EM132538951

Question 1 : Kelly Corporation borrows $120,000 from First Community Bank. How would this transaction be recorded?

Debit Accounts Receivable $120,000, credit Notes Payable $120,000
Debit Notes Payable $120,000, credit Accounts Receivable $120,000
Debit Cash $120,000, credit Notes Payable $120,000
Debit Notes Payable $120,000, credit Cash $120,000

Question 2 : A company purchases supplies for cash. The company records this transaction with a:

Debit to Cash
Debit to Supplies
Credit to Accounts Receivable
Credit to Retained Earnings

Question 3 : Timmons Corporation purchases office supplies for $350 cash. How would this transaction be recorded?

Debit Inventory $350, credit Cash $350
Debit Cash $350, credit Inventory $350
Debit Supplies $350, credit Cash $350
Debit Cash $350, credit Supplies $350

Question 4 : Indicate how to increase and decrease each account listed below by selecting debit or credit.

Increasing / Decreasing

Retained Earning

Revenue

Expenses

Dividends