Question

ACCOUNTING CYCLE Basic journal entry with the step-through method For the following transaction, answer the questions that follow in accordance with the rules of journalizing and the Transaction: Stewart Company placed an ad in the local paper for the current month to be paid next month, $1,600. which two accounts are affected? Choose one Choose one V What kind of accounts are they? Choose one Choose one Do the account balances increase or decrease? Increase Decrease Increase Decrease Do we debit or credit the accounts? Debit Credit O Debit Credit Х 5 ?

Answer 1

Journal entry is

Advertisement expense. Dr

To Account payable

Advertisement expense is to be debited because it is an expense account when in increases the account should be debited

Account payable is credited as it is a liability account it is credited when liability increased

Accounts affected	advertising expense	Account payable
Kind of account	expense account	liability account
Do the balance increases or decrease	imcrease	increase
Credit or debit account	Debit	credit