TAccounts-OrangeCoastCollege.pptVIP

DEBITS = CREDITS DR. CONSULT. FEES $6,000 CR. ACCOUNTS RECEIVABLE DR. CR. $6,000 ACCOUNTS RECEIVABLE INSTEAD OF CASH + + RULE #7 EXPENSE ACCOUNTS Dr. Cr. Increase on the Debit Side Decrease on the Credit Side JUST LIKE ASSET ACCOUNTS + EXAMPLE MARY ADAMS PAID HER ASSISTANT $750 IN WAGES STEPS #1 #2 Name and classify the accounts affected: WAGES EXPENSE CASH DR. CR. DR. CR. EXPENSE ASSET STEP #3 Now that we know the classification, we can identify increase and decrease sides. CASH DR. CR. WAGES EXPENSE DR. CR. + + INCREASED OR DECREASED? CASH DR. CR. WAGES EXPENSE DR. CR. INCREASED D