Match the following basic transaction analysis with the best description of the economic event. 1. Cash increased

Question:

Match the following basic transaction analysis with the best description of the economic event.

1. Cash increased by $9,000 and the owner’s equity account, M. Vijayakumar, Capital, is increased by $9,000.

2. Cash is decreased by $6,000 and the asset account Prepaid Rent is increased.

3. Supplies is increased by $1,000 and the liability account Accounts Payable is increased by $1,000.

4. Accounts receivable is increased by $900 and the revenue account Service Revenue is increased by $900.

Description Transaction Analysis

a. Cash paid in advance for rent. _______

b. Owner invests cash in the business. _______

c. Supplies are purchased on account. _______

d. Company provides service on account. _______

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...

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