1. Chapter 4 Debit and Credit Theory
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

2. Debit and Credit Theory This tutorial guides you through classifying various transactions using debit and credit theory. For more detailed instructions, refer to Section 4.2 of the Accounting 1 textbook. Skip directly to one of the 7 demonstration transactions: Transaction 1 Transaction 2 Transaction 3 Transaction 4 Transaction 5 Transaction 6 Transaction 7
Chapter 4 – Debit and Credit Theory | Accounting 1, 7th Edition

3. Debit and Credit Theory When viewed in T-account form, all accounts have a left and a right side.
Chapter 4 – Debit and Credit Theory | Accounting 1, 7th Edition

4. Debit and Credit Theory The word Debit is associated with the left side.
Chapter 4 – Debit and Credit Theory | Accounting 1, 7th Edition

5. Debit and Credit Theory The word Credit is associated with the right side.
Chapter 4 – Debit and Credit Theory | Accounting 1, 7th Edition

6. Debit and Credit Theory Assets, Liabilities, and Owner’s Equity accounts have their own debit and credit rules.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

7. Debit and Credit Theory Asset accounts are on the left of the balance sheet, so their beginning value is a debit, and a debit increases their account balance.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

8. Debit and Credit Theory Liability and Owner’s Equity accounts are on the right of the balance sheet, so their beginning value is a credit, and a credit increases their account balance.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

9. Debit and Credit Theory Remember, assets behave opposite from liabilities and owner’s equity because they are on different sides of the balance sheet.
Chapter 4 – Debit and Credit Theory | Accounting 1, 7th Edition

10. Debit and Credit Theory Transaction 1: The company purchases $200 worth of supplies from Packham Products, to be paid for later.
Chapter 4 – Debit and Credit Theory | Accounting 1, 7th Edition

11. Debit and Credit Theory Transaction 1: The company purchases $200 worth of supplies from Packham Products, to be paid for later.
Chapter 4 – Debit and Credit Theory | Accounting 1, 7th Edition

12. Debit and Credit Theory Transaction 1: The company purchases $200 worth of supplies from Packham Products, to be paid for later.
Chapter 4 – Debit and Credit Theory | Accounting 1, 7th Edition

13. Debit and Credit Theory Transaction 1: The company purchases $200 worth of supplies from Packham Products, to be paid for later.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

14. Debit and Credit Theory Transaction 1: The company purchases $200 worth of supplies from Packham Products, to be paid for later.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

15. Debit and Credit Theory Transaction 1: The company purchases $200 worth of supplies from Packham Products, to be paid for later.
Chapter 4 – Debit and Credit Theory | Accounting 1, 7th Edition

16. Debit and Credit Theory Transaction 1: The company purchases $200 worth of supplies from Packham Products, to be paid for later.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

17. Debit and Credit Theory Transaction 1: The company purchases $200 worth of supplies from Packham Products, to be paid for later.
Chapter 4 – Debit and Credit Theory | Accounting 1, 7th Edition

18. Debit and Credit Theory Transaction 1: The company purchases $200 worth of supplies from Packham Products, to be paid for later.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

19. Debit and Credit Theory Transaction 1: The company purchases $200 worth of supplies from Packham Products, to be paid for later.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

20. Debit and Credit Theory Transaction 1: The company purchases $200 worth of supplies from Packham Products, to be paid for later.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

21. Debit and Credit Theory Transaction 2: The company pays $500 to Dini Bros. in partial payment of the amount owed to them.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

22. Debit and Credit Theory Transaction 2: The company pays $500 to Dini Bros. in partial payment of the amount owed to them.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

23. Debit and Credit Theory Transaction 2: The company pays $500 to Dini Bros. in partial payment of the amount owed to them.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

24. Debit and Credit Theory Transaction 2: The company pays $500 to Dini Bros. in partial payment of the amount owed to them.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

25. Debit and Credit Theory Transaction 2: The company pays $500 to Dini Bros. in partial payment of the amount owed to them.
Chapter 4 – Debit and Credit Theory | Accounting 1, 7th Edition

26. Debit and Credit Theory Transaction 2: The company pays $500 to Dini Bros. in partial payment of the amount owed to them.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

27. Debit and Credit Theory Transaction 2: The company pays $500 to Dini Bros. in partial payment of the amount owed to them.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

28. Debit and Credit Theory Transaction 2: The company pays $500 to Dini Bros. in partial payment of the amount owed to them.
Chapter 4 – Debit and Credit Theory | Accounting 1, 7th Edition

29. Debit and Credit Theory Transaction 2: The company pays $500 to Dini Bros. in partial payment of the amount owed to them.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

30. Debit and Credit Theory Transaction 2: The company pays $500 to Dini Bros. in partial payment of the amount owed to them.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

31. Debit and Credit Theory Transaction 2: The company pays $500 to Dini Bros. in partial payment of the amount owed to them.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

32. Debit and Credit Theory Transaction 3: The company receives $200 cash from R. Van Loon in partial payment of her debt.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

33. Debit and Credit Theory Transaction 3: The company receives $200 cash from R. Van Loon in partial payment of her debt.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

34. Debit and Credit Theory Transaction 3: The company receives $200 cash from R. Van Loon in partial payment of her debt.
Chapter 4 – Debit and Credit Theory | Accounting 1, 7th Edition

35. Debit and Credit Theory Transaction 3: The company receives $200 cash from R. Van Loon in partial payment of her debt.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

36. Debit and Credit Theory Transaction 3: The company receives $200 cash from R. Van Loon in partial payment of her debt.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

37. Debit and Credit Theory Transaction 3: The company receives $200 cash from R. Van Loon in partial payment of her debt.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

38. Debit and Credit Theory Transaction 3: The company receives $200 cash from R. Van Loon in partial payment of her debt.
Chapter 4 – Debit and Credit Theory | Accounting 1, 7th Edition

39. Debit and Credit Theory Transaction 3: The company receives $200 cash from R. Van Loon in partial payment of her debt.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

40. Debit and Credit Theory Transaction 3: The company receives $200 cash from R. Van Loon in partial payment of her debt.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

41. Debit and Credit Theory Transaction 3: The company receives $200 cash from R. Van Loon in partial payment of her debt.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

42. Debit and Credit Theory Transaction 3; The company receives $200 cash from R. Van Loon in partial payment of her debt.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

43. Debit and Credit Theory Transaction 4: A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

44. Debit and Credit Theory Transaction 4: A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

45. Debit and Credit Theory Transaction 4: A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

46. Debit and Credit Theory Transaction 4: A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

47. Debit and Credit Theory Transaction 4: A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed.
Chapter 4 – Debit and Credit Theory | Accounting 1, 7th Edition

48. Debit and Credit Theory Transaction 4: A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

49. Debit and Credit Theory Transaction 4: A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

50. Debit and Credit Theory Transaction 4; A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

51. Debit and Credit Theory Transaction 4: A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed.
Chapter 4 – Debit and Credit Theory l 00/00/00 | Accounting 1, 7th Edition

52. Debit and Credit Theory Transaction 4: A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

53. Debit and Credit Theory Transaction 4: A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

54. Debit and Credit Theory Transaction 5: A used truck costing $8000 is purchased from Dini Bros. A cash down payment of $2500 is made at the time of the purchase and the balance is to be paid at a later date.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

55. Debit and Credit Theory Transaction 5: A used truck costing $8000 is purchased from Dini Bros. A cash down payment of $2500 is made at the time of the purchase and the balance is to be paid at a later date.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

56. Debit and Credit Theory Transaction 5: A used truck costing $8000 is purchased from Dini Bros. A cash down payment of $2500 is made at the time of the purchase and the balance is to be paid at a later date.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

57. Debit and Credit Theory Transaction 5: A used truck costing $8000 is purchased from Dini Bros. A cash down payment of $2500 is made at the time of the purchase and the balance is to be paid at a later date.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

58. Debit and Credit Theory Transaction 5: A used truck costing $8000 is purchased from Dini Bros. A cash down payment of $2500 is made at the time of the purchase and the balance is to be paid at a later date.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

59. Debit and Credit Theory Transaction 5: A used truck costing $8000 is purchased from Dini Bros. A cash down payment of $2500 is made at the time of the purchase and the balance is to be paid at a later date.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

60. Debit and Credit Theory Transaction 5: A used truck costing $8000 is purchased from Dini Bros. A cash down payment of $2500 is made at the time of the purchase and the balance is to be paid at a later date.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

61. Debit and Credit Theory Transaction 5: A used truck costing $8000 is purchased from Dini Bros. A cash down payment of $2500 is made at the time of the purchase and the balance is to be paid at a later date.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

62. Debit and Credit Theory Transaction 5: A used truck costing $8000 is purchased from Dini Bros. A cash down payment of $2500 is made at the time of the purchase and the balance is to be paid at a later date.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

63. Debit and Credit Theory Transaction 5: A used truck costing $8000 is purchased from Dini Bros. A cash down payment of $2500 is made at the time of the purchase and the balance is to be paid at a later date.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

64. Debit and Credit Theory Transaction 5: A used truck costing $8000 is purchased from Dini Bros. A cash down payment of $2500 is made at the time of the purchase and the balance is to be paid at a later date.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

65. Debit and Credit Theory Transaction 5: A used truck costing $8000 is purchased from Dini Bros. A cash down payment of $2500 is made at the time of the purchase and the balance is to be paid at a later date.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

66. Debit and Credit Theory Transaction 6: A delivery service is completed for R. Van Loon at a price of $350. Van Loon does not pay for the service at the time it is provided, but agrees to pay within 30 days.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

67. Debit and Credit Theory Transaction 6: A delivery service is completed for R. Van Loon at a price of $350. Van Loon does not pay for the service at the time it is provided, but agrees to pay within 30 days.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

68. Debit and Credit Theory Transaction 6: A delivery service is completed for R. Van Loon at a price of $350. Van Loon does not pay for the service at the time it is provided, but agrees to pay within 30 days.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

69. Debit and Credit Theory Transaction 6: A delivery service is completed for R. Van Loon at a price of $350. Van Loon does not pay for the service at the time it is provided, but agrees to pay within 30 days.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

70. Debit and Credit Theory Transaction 6: A delivery service is completed for R. Van Loon at a price of $350. Van Loon does not pay for the service at the time it is provided, but agrees to pay within 30 days.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

71. Debit and Credit Theory Transaction 6: A delivery service is completed for R. Van Loon at a price of $350. Van Loon does not pay for the service at the time it is provided, but agrees to pay within 30 days.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

72. Debit and Credit Theory Transaction 6: A delivery service is completed for R. Van Loon at a price of $350. Van Loon does not pay for the service at the time it is provided, but agrees to pay within 30 days.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

73. Debit and Credit Theory Transaction 6; A delivery service is completed for R. Van Loon at a price of $350. Van Loon does not pay for the service at the time it is provided, but agrees to pay within 30 days.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

74. Debit and Credit Theory Transaction 6: A delivery service is completed for R. Van Loon at a price of $350. Van Loon does not pay for the service at the time it is provided, but agrees to pay within 30 days.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

75. Debit and Credit Theory Transaction 6: A delivery service is completed for R. Van Loon at a price of $350. Van Loon does not pay for the service at the time it is provided, but agrees to pay within 30 days.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

76. Debit and Credit Theory Transaction 6: A delivery service is completed for R. Van Loon at a price of $350. Van Loon does not pay for the service at the time it is provided, but agrees to pay within 30 days.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

77. Debit and Credit Theory Transaction 7: One of the lifting machines (part of Equipment) breaks down. The company spends $650 cash to have the machine repaired.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

78. Debit and Credit Theory Transaction 7: One of the lifting machines (part of Equipment) breaks down. The company spends $650 cash to have the machine repaired.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

79. Debit and Credit Theory Transaction 7: One of the lifting machines (part of Equipment) breaks down. The company spends $650 cash to have the machine repaired.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

80. Debit and Credit Theory Transaction 7: One of the lifting machines (part of Equipment) breaks down. The company spends $650 cash to have the machine repaired.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

81. Debit and Credit Theory Transaction 7: One of the lifting machines (part of Equipment) breaks down. The company spends $650 cash to have the machine repaired.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

82. Debit and Credit Theory Transaction 7: One of the lifting machines (part of Equipment) breaks down. The company spends $650 cash to have the machine repaired.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

83. Debit and Credit Theory Transaction 7: One of the lifting machines (part of Equipment) breaks down. The company spends $650 cash to have the machine repaired.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

84. Debit and Credit Theory Transaction 7: One of the lifting machines (part of Equipment) breaks down. The company spends $650 cash to have the machine repaired.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

85. Debit and Credit Theory Transaction 7: One of the lifting machines (part of Equipment) breaks down. The company spends $650 cash to have the machine repaired.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

86. Debit and Credit Theory Transaction 7: One of the lifting machines (part of Equipment) breaks down. The company spends $650 cash to have the machine repaired.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

87. Debit and Credit Theory Transaction 7: One of the lifting machines (part of Equipment) breaks down. The company spends $650 cash to have the machine repaired.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition

88. Debit and Credit Theory Summary of all transactions.
Chapter 4 – Debit and Credit Theory l Accounting 1, 7th Edition