PROBLEM 1 PROBLEM 2

Indicate in each independent case whether the account is to be Put a check on the appropriate column opposite each give data
debited or to be credited to correctly describe the effect on the related account.

DEBIT CREDIT
1. Decrease in cash. 1. Increase in cash.
2. Increase in owner’s drawing account. 2. Decrease in accounts payable.
3. Increase in accounts payable. 3. Decrease in revenue
4. Decrease in owner’s equity. 4. Increase in expenses.
5. Decrease in prepaid insurance. 5. Increase in owner’s drawing.
6. Decrease in unearned income. 6. Increase in notes payable.
7. Increase in rent income. 7. Decrease in inventories.
8. Increase in office equipment. 8. Decrease in prepaid expense.
9. Decrease in accounts receivable. 9. Increase in rent expense.
10. Decrease in unpaid salaries. 10. Increase in unused supplies.