2TI - Horngren'S Financial And Managerial Accounting

Question

For each account, identify if the change would be recorded as a debit (DR) or credit (CR). 

11. Increase to Cash 16. Increase to Interest Revenue 

12. Decrease to Accounts Payable 17. Increase to Rent Expense 

13. Increase to Common Stock 18. Decrease to Office Supplies 

14. Increase to Unearned Revenue 19. Increase to Prepaid Rent 

15. Decrease to Accounts Receivable 20. Increase to Notes Payable

Step-by-Step Solution

Answer

Answer

Common stock represents the ownership of the company and transactions are identified as debit or credit.

Step 1: Definition of Common Stock

The common stock is defined as the stocks or shares which represent the ownership of the company with voting rights.

Step 2: Identification of recording the change

Transaction	Debit (dr) or Credit (cr)
11 Increase to Cash	Debit (dr)
12 Decrease to Accounts Payable	Debit (dr)
13 Increase to Common Stock	Credit (cr)
14 Increase to Unearned Revenue	Credit (cr)
15 Decrease to Accounts Receivable	Credit (cr)
16 Increase to Interest Revenue	Credit (cr)
17 Increase to Rent Expense	Debit (dr)
18 Decrease to Office Supplies	Credit (cr)
19 Increase to Prepaid Rent	Debit (dr)
20 Increase to Notes Payable	Credit (cr)