Why is the cash account debited in the journal when there is an increase in cash coming into the business?
The cash account is debited in the journal when there is inflow of cash because it is of Real account natural which follows the rule of Debit what comes in and credit what goes out. Hence the account is debited.
Why is the cash account debited in the journal when there is an increase in cash...
Why is an increase in asset accounts a cash outflow and increase in liabilities account a cash inflow?
In a merchandising business, when merchandise sold on account, a journal entry is booked to Debit to Accounts Receivable and Credit to Sales. In addition: Select one: O A. Cost of goods sold is debited and Merchandise inventory is credited. • B. Cost of goods sold is credited and Merchandise inventory is debited. C. Accounts Receivable is credited and Sales is debited. O D. None of the above.
Which of the following balances increase when their accounts are debited? (select all that apply - i.e. just one or as many as all of them) Rent revenue Prepaid rent A contra-asset account Inventory A contra-revenue account Accrued interest payable O A contra-expense account Cost of goods sold
71) When the Withdrawals account is closed, A) Owner's Capital will be debited. B) Income Summary will be debited. C) Income Summary will be credited Dj None of these are correct. 72) The Income Summary account debited and the expense accounts credited would be the result of Al closing the income Summary account--there is a net income. B) closing the revenue accounts c) closing the income Summary accounts - there is a net loss. D) closing the expense accounts 73)...
when reimbursing the petty cash fund: a. cash is debited, b. petty cash is credited, c. petty cash is debited, d. appropriate expense accounts are debited, e, no expenses are recorded
Paid $1,800 for six month insurance policy. When journalizing this transaction the account will be debited for $1,800 and the account will be credited for $1,800. Question 20 3 pts Purchased $9,800 of supplies on account. When journalizing this transaction the account will be debited for $9,800 and the account will be credited for $9,800. Question 21 3 pts Recorded $2,250 of fees earned on account. When journalizing this transaction the account will be debited for $2,250 and the account...
At Pronghorn Corp., prepaid costs are debited to expense when cash is paid and unearned revenues are credited to revenue when the cash is received. During January of the current year, the following transactions occurred. Jan. 2 Received $10,100 for services to be performed in the future. Paid $3,672 for casualty insurance protection for the year. Paid $4,650 for supplies. 10 On January 31, it is determined that $3,460 of the service revenue has been earned and that there is...
The Cash T-account has a beginning balance of $52,000. During the year, $365,000 was debited and $360,000 was credited to the account. What is the ending balance of cash?
A business buys $300 of office supplies on account. Which of the following accounts is debited? O A. Accounts Receivable OB. Accounts Payable OC. Cash OD. Office Supplies
The Estimated Revenues account of a government is debited when: Question 38 options: A) The account is closed to fund balance-unassigned at the end of the year. B) Property taxes are recorded. C) Property taxes are collected. D) The budget is recorded at the beginning of the year.