Accounting Cheat Sheet For Transactions (Page 6 of 6) in pdf

Accounting Cheat Sheet For Transactions Page 6

Page 6 of 6

(5) Pay Supplier Charge Purchases -pay suppliers for products and/or services that we promised to pay

for later (charge).

The business gets the amount of their promise to pay the supplier reduced and gives up cash or a check.

Accounts Used:

Debit: Accounts Payable

Credit: Cash

(6) Receive Customer Charge Payments -receive payments from a customer that promised to pay us

later (charge sale).

The business gets cash or a check from their customer and gives up (reduces the amount of) their

customer's promise to pay.

Accounts Used:

Debit: Cash

Credit: Accounts Receivable

(7) Borrow Money (Loans) The business gets cash or equipment and gives up a promise to pay.

Accounts Used:

Debit: Cash or Equipment

Credit: Note Payable

(8) Repay a Loan

The business gets the amount of their promise to pay reduced and gives up cash or a check.

Accounts Used:

Debit: Note Payable

Credit: Cash

(9) Draw

The business gets the owner's claim to the business assets reduced and gives up cash or a check.

Accounts Used:

Debit: Owner's Draw

Credit: Cash

(10) Payroll (not covered in this tutorial)

The business gets services from their employees and gives up a check.

Accounts Used:

Debit: Salary & Wages Expense

Credit: Cash

Accounting Cheat Sheet For Transactions Page 6