1.Your answer should include name of the account to debit, name of the account to credit and proper amounts for both debit and credit sides.

a) Company's sales representative employee used $300 of prepayment to buy petrol for company car (costs by function applied).

b) Company purchased an insurance for current month $200. The amount will be paid next month (costs by nature applied).

c) Company received an invoice for $2 000 for electricity used in production. The amount will be paid in the next month (costs by nature applied).