1. a) The asset Accounts Receivable was increased. Increases in assets are recorded by debits. Debit Account Receivable $2,500. b) Revenue has been earned. Revenue increases owners’ equity. Increases in owners’ equity are recorded by credits. Credit Testing Service Revenue $2,500. 2. a) The asset Testing Supplies was increased. Increases in assets are recorded by debits. Debit Testing Supplies $3,800. b) The asset Cash was decreased and liabilities Account Payable increases. Decreases in asset and increase in liabilities are recorded by credits. Credit Cash $800 and Account Payable $3,000. 3. a) The liabilities Account Payable was decreased. Decreases in liabilities are recorded by debits. Debit Account Payable $100. b) The asset Testing Supplies was decreased. Decreases in asset are recorded by credits. Credit Testing Supplies $100. 4. a) The asset Cash was increased. Increases in asset are recorded by debits. Debit Cash $20,000. b) The owners’ equity Capital Stock was increased. Increases in owners’ equity are recorded by credits. Credit Capital Stock $20,000. 5. a) The asset Cash was increased. Increases in asset are recorded by debits. Debit Cash $600. b) The asset Account Receivable was decreased. Decreases in asset are recorded by credits. Credit Account Receivable $600. 6. a) The liabilities Account Payable was decreased. Decreases in liabilities are recorded by debits. Debit Account Payable $3,000. b) The asset Cash was decreased. Increases in asset are recorded by credits. Credit Cash $3,000. 7. a) The owners’ equity Capital Stock was decreased. Decreases in owners’ equity are recorded by debits. Debit Capital Stock $6,800. b) The asset Cash was decreased. Decreases in asset are recorded by credits. Credit Cash $6,800.