Match each of the numbered transactions of a corporation with Effect of Transaction indicating the debits and credits to be made (give the debit first)
-Purchased equipment on account.
A) Debit an asset
B) Credit an asset
C) Debit a liability
D) Credit a liability
E) Debit common stock
F) Credit common stock
G) Debit dividends
H) Credit dividends
I) Debit revenue
J) Credit revenue
K) Debit expense
L) Credit expense

Question

Quizplus · Accepted Answer

When a corporation purchases equipment on account, it increases its assets (equipment) by debiting an asset account. Simultaneously, because the purchase is on account, it increases its liabilities (accounts payable or a similar liability account) by crediting a liability account.

Match Each of the Numbered Transactions of a Corporation with Effect