Q2TI

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

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Answer

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

1Step 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.

2Step 2: Identification of recording the change