Problem $1$

In order to make the accounting equation work, and remain in balance, we must follow the rules of debits and credits. The rules are shown to the right. You must memorize these rules, and know the nomal balance of each account classification.

Instructions: Below are several business transactions and the accounts used to record the transaction in the accounting records. Analyze each transaction to determine if the account is debited or credited. Write "debit" or "credit" to the right of the account title to indicate your answer. The first transaction is completed for you.

$\backslash$table$[[,$Transaction,Accounts,Debit or Credit?$],[\{$

$\backslash$table$[[$Charles Chadwick invested $$5,000$ in$],[$the business.$]]\},$Cash,Debit$],[$C$.$ Chadwick, Capital,Credit$],[7\text{'},$Purchased supplies for cash, $$50.,$Cash,$],[8,$Supplies,$],[9,$Paid wages of $$200.,$Cash,$],[10,$Wages Expense,$],[11,$Withdrew $$500$ for personal use.,Cash,$],[12,$C$.$ Chadwick, Drawing,$],[13,\backslash$table$[[$Purchased equipment on account,$],[$$$20,000.]],$Equipment,$],[14,$Accounts Payable,$],[15,\backslash$table$[[$Provided delivery services on account,$],[$$$500.]],$Delivery Fees,$],[16,$Accounts Recelvable,$],[17,\backslash$table$[[$Purchased a six$-$month insurance$],[$policy$,$ $$600.]],$Cash,$],[18,$Prepaid Insurance,$],[19,$Received $$100$ for delivery fees.,Cash,$],[20,$Delivery Fees,$]]$