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27 February, 14:58

For each of the following independent events, identify the account that would be debited and the account that would be credited. The accounts for the first event are identified as an example.

(a) Received cash by issuing common stock

(b) Received cash for services to be performed in the future.

(c) Paid salaries payable.

(d) Provided services on account.

(e) Paid cash for operating expenses.

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  1. 27 February, 17:51
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    A. Received cash by issuing common stock

    Debit: Cash

    Credit: common stock

    B. Received cash for services to be performed in the future.

    Debit: Cash

    Credit: unearned revenue.

    C. Paid salaries payable

    Debit: salaries payable

    Credit: cash

    D. Provided services on account.

    Debit: accounts receivable

    Credit: service revenue

    E. Paid cash for operating expenses

    Debit: operating expenses

    Credit: cash

    Explanation:

    A. Received cash by issuing common stock

    Debit: Cash

    Credit: common stock

    B. Received cash for services to be performed in the future.

    Debit: Cash

    Credit: unearned revenue.

    C. Paid salaries payable

    Debit: salaries payable

    Credit: cash

    D. Provided services on account.

    Debit: accounts receivable

    Credit: service revenue

    E. Paid cash for operating expenses

    Debit: operating expenses

    Credit: cash
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