Accounts Payable Cash Prepaid Rent Common Stock Salaries Payable Equipment Supplies Rent Expense Notes Payable Salaries Expense Accounts Receivable Utilities Expense Service Revenue Retained Earnings Dividends 37 Required: Indicate which accounts should be debited and which should be credited for the following transactions of Hokies company 1 2 Answer is complete but not entirely correct. Transactions Account Debited Account Credited Example: Purchase equipment in exchange for cash Equipment Cash Pay a cash dividend Dividends Accounts payable Pay rent in advance for the next three months, Accounts receivable Accounts payable Accounts Provide services to customers on account receivable Accounts payable Accounts Purchase office supplies on account receivable Accounts payable Accounts Pay salaries for the current month. receivable Accounts payable Accounts Issue common stock in exchange for cash, receivable Accounts payable Accounts Collect cash from customers for services provided in (3) Accounts payable above receivable Accounts Borrow cash from the bank and sign a note Accounts payable receivable Accounts Accounts payable Pay for the current month's utilities recevable Accounts payable Accounts payable Pay for office supplies purchased in (4) above. 5 6. 7 8. 9. 10