Exercise 1

Use debits and credits to analyze the following transactions and indicate which accounts are affected and where they increase.

A security company bought office supplies for cash for $ 1,000.

The security company purchased a safe on credit for $ 2,000.

The owner of the security company invested $ 25,000 in cash.

During the security company's first month of operations, $ 11,000 in salary was paid to security guards.

A client paid $ 26,000 cash for a security service.

During the first month, $ 400 was paid for electric light service.

Exercise 2

Answer the following premises:

Explain the concept of debit in accounting in your own word.

Explain the concept of credit in accounting in your own word.

Explain in your own word the difference between a ledger and an account.

Exercise 3

Analyze the following transactions and make a list of the accounts that are affected. Organize them as they should appear in the chart of accounts and indicate the number that corresponds to each account.

February 1 $ 18,000 in cash was invested to start the business.

3 A business vehicle was purchased for $ 19,000 on credit.

3 Office supplies were purchased for $ 800 in cash.

4 The rent for the business premises for the current month was paid for $ 2,000.

5 A service was performed to a customer (fee earned) in the amount of $ 5,000.

10 A computer was purchased for $ 1,500.

15 Employees were paid wages of $ 3,800.

16 A service was performed to a customer on credit for $ 2,500.

18 A payment was made on the vehicle purchased on credit on February 3 for $ 450.