Prelim Activity #4 | CS2

Paid salaries $3,000, rent for August $900, and advertising expenses $350. What will happen to liability?

• Debit

• Credit

• No effect

Incurred advertising expense for May of $1,200 on account. What will happen to asset?

• Debit

• Credit

• No effect

Incurred advertising expense for May of $1,200 on account. What will happen to equity?

• Debit

• Credit

• No effect

Various clients were billed for legal services rendered, P16,400. What will happen to liability?

• Debit

• Credit

• No effect

Repair supplies bought for cash and used for repairs amounted to P 6,500. What will happen to liability?

• Debit

• Credit

• No effect

Repair supplies bought for cash and used for repairs amounted to P 6,500. What will happen to equity?

• Debit

• Credit

• No effect

Purchased additional office equipment on account from Office Depot Co., $3,500. What will happen to equity?

• Debit

• Credit

• No effect

Paid electricity bill for the month, $400. What will happen to liability?

• Debit

• Credit

• No effect

The business received a bill for utilities in November to be paid in December, $280. What will happen to liability?

• Debit

• Credit

• No effect

Partially paid supplier, P30,000. What will happen to asset?

• Debit

• Credit

• No effect