Week 5 Review

Paid $200 cash for maintenance expense

• Debit Cash

• Credit Cash

The owner invested $4,000 cash in the business

• Debit Cash

• Credit Cash

The owner invested $4,000 cash in the business

• Debit Owner's Equity

• Credit Owner's Equity

Paid $2,400 cash for one year of insurance

• Debit Prepaid Insurance

• Credit Prepaid Insurance

Received a telephone bill for $150, which will be paid later

• Debit Accounts Payable

• Credit Accounts Payable

Purchased equipment worth $1,000 on account

• Debit Equipment

• Credit Equipment

Paid $500 toward the bank loan

• Debit Bank Loan

• Credit Bank Loan

Paid $50 interest related to the bank loan

• Debit Interest Expense

• Credit Interest Expense

Paid $700 of accounts payable

• Debit Cash

• Credit Cash