Question

I have to figure out what basic type of account debited and credited, the specific account, whether the account is increased or decreased, and the normal balance of the specific account.
This is the transaction.
Purchased used car for $4,000 cash for use in business.

For the debited side I got basic type-asset, specific account-equipment, effect-increase, and normal balance-debit. For the credited side I got basic type-asset, specific account-cash, Effect-decrease, and Normal balance-credit. Am I on the right track with this?

Answer 1

Thank you! This will come in handy!