Account(s) Debited Account(s) Credited TRANSACTION You promise to pay $20 for tutoring done next month Cash sale Sale on account Purchase office supplies for cash Purchase office supplies on account Purchase automobile on account Purchase furniture, paying part cash, part on account Prepay one year insurance Customer pays amount owing on account Borrow cash from the bank Send cheque to a supplier on account Owner takes home a company computer for personal use Owner invests cash into the business Record yearly depreciation on company automobiles Retailer buys goods for resale on account (assume periodic inventory system and no tax) Retailer sells goods for cash (periodic system; no tax) Sold company automobile for $15 000. Automobile cost $20 000, accumulated depreciation $5 000 Paid cash for regular automobile maintenance