Title: Debit and Credit rules:
Author: user1
Last saved by: DDSB

Unit 3: Income Statement Accounts 
Activity 1: Introduction to Revenue and Expense Accounts

Assignment 1 Revenue and Expenses

1.  Complete the following chart with the accounting terms: debit and credit.

Type of Account | Increase | Decrease
Asset | |
Liability | |
Owner’s Equity | |
Revenue | |
Expense | |

2. For each of the following, state the side of the account you would expect to see a balance.

Account | Debit or Credit
Cash |
Accounts Receivable |
Accounts Payable |
Ned Flanders, Capital |
Fees Earned |
Telephone Expense |
Commissions Earned |
Rent Expense |
Rental Revenue |
Salaries Expense |

3. Analyse the following transactions for Rebecca’s Pet Grooming and then record the transactions in the T-accounts.  The account names and opening balances for Rebecca Chow’s business are shown in the ledger.

Transaction 1 On February 1, Rebecca paid monthly rent of $535.

Account Affected

Increase/
Decrease

Type of Account

Debit/
Credit

Amount

Transaction 2 On February 2, Rebecca shampooed and clipped a small dog and received $35 in cash.

Account Affected

Increase/
Decrease

Type of Account

Debit/
Credit

Amount

Transaction 3 On February 3, On February 3, Rebecca groomed three dogs to prepare them for a dog show. Rebecca provided this $105 service on account.

Account Affected

Increase/
Decrease

Type of Account

Debit/
Credit

Amount

Transaction 4 On February 4, Rebecca paid her telephone bill for $68.

Account Affected

Increase/
Decrease

Type of Account

Debit/
Credit

Amount

Transaction 5 On February 5, Rebecca paid her part-time employee $300 for two week’s wages.

Account Affected

Increase/
Decrease

Type of Account

Debit/
Credit

Amount

Rebecca’s Pet Grooming Ledger

Cash | | Accounts Payable
Jan 31        900 | | | | Jan 31         250

Accounts Receivable | | Rebecca Chow, Capital
Jan 31        200 | | | | Jan 31     2,400

Grooming Supplies | | Grooming Revenue
Jan 31        100 | | | |

Grooming Equipment | | Rent Expense
Jan 31        750 | | | |

Furniture | | Telephone Expense
Jan 31        700 | | | |

| | Wages Expense