Intermediate Accounting Exam 1 with Complete Solutions | Graded A+

Indicate which accounts should be debited and credited. Purchased inventory for cash. - Debit inventory, credit cash Indicate which accounts should be debited and credited. Paid a cash dividend. - Debit Retained earnings, credit cash Indicate which accounts should be debited and credited. Paid rent for the next three months. - Debit Prepaid rent, credit cash Indicate which accounts should be debited and credited. Sold goods to customers on account. (To record sale of goods to customers.) - Debit A/R, credit Sales revenue Indicate which accounts should be debited and credited. Sold goods to customers on account. (To record cost of goods sold to customers). - Debit COGS, credit Inventory Indicate which accounts should be debited and credited. Purchased inventory on account. - Debit Inventory, credit Accounts payable Indicate which accounts should be debited and credited. Purchased supplies for cash. - Debit Supplies, credit cash