[opierfg]

If a transaction is properly analyzed and recorded:

a.only two accounts will be used to record the transaction.
B one account balance will increase and another will decresae
c.one asset account will be debited and one liability account will be credited
d.the total amount debited will equal the total amoutnt credited

[pready]

A. More than 2 accounts can be used to record a transaction. For example: Purchased equipment and made a down pyament for part of the price and financed the rest. The journal entry will be: Debit PP&E for the whole amount, Credit Cash for the amount of down payment, Credit Notes Payable for the amount financed

B. two or more accunts may increase, for Example received a bill for utilities, but did not pay the bill. The journal entry will be: Debit Utilities Expense for the amount and Credit Utilities Payable for the amount.

C. You can have journal entries that do not affect an asset or liability or you can have either an increase or a decrease to an asset and or a liability. For an example to reccord Depreaciation the journal entry will be: Debit Deprecaition Expense for the amount and Credit Accumulated Depreciation - Equipment for the amount. The creidt is an increase to a contra asset account. Another example you paid cash for supplies, the journal entry is: Debit Supplies for the amount and Credit Cash for the amount. This is an increase to one asset account and a decrease to another asset account.

D. All debits must equal credits.