Which of the following accounting entries would you most expect to accompany a $9000 decrease in cash and why?

Which of the following accounting entries would you most expect to accompany a $9000 decrease in cash and why?

Which of the following accounting entries would you MOST expect to accompany a $9,000 decrease in cash, and why? A $9,000 increase in Equipment , because cash is an asset, so an equal but opposite change to another asset account such as Equipment will offset the decrease to the Cash account.

How do you prepare a trial balance for a journal entry?

Following are the steps:

1. Calculate the Balances of Each of the Ledger Accounts.
2. Record Debit or Credit Balances in Trial Balance.
3. Calculate Total of The Debit Column.
4. Calculate Total of The Credit Column.
5. Check if Debit is Equal To Credit.

How do you write journal entries in accounting?

Format of the Journal Entry

1. The accounts into which the debits and credits are to be recorded.
2. The date of the entry.
3. The accounting period in which the journal entry should be recorded.
4. The name of the person recording the entry.
5. Any managerial authorization(s)
6. A unique number to identify the journal entry.

In what order are transactions in a journal initially recorded?

chronological order
The Journal – is the book where the transactions are initially recorded in chronological order. It is referred to as the book of original entry.

How do you Journalize an opening entry?

Recording opening balances at the beginning of the Accounting Year.

1. Choose Journal type Opening Balances in Journal Entry.
2. Choose the desired period, accounting year and date.
3. Begin by entering the balances on the debit side.
4. After registering the debit balances, use accounts 2000 to 3999 to enter the credit balances.

What should be the journal entry for Transaction Number 2?

The journal entry should increase the company’s Cash, and increase (establish) the capital account of Mr. Gray; hence: Transaction #2: On December 5, Gray Electronic Repair Services paid registration and licensing fees for the business, $370.

What is the result of the journal entry purchased 6000 on credit?

Increase in Liabilities (Accounts Payable) by $6,000 Credit Journal Entry Debit Credit Merchandise 6,000 Accounts Payable 6,000 Description of Journal Entry Purchased $6,000 merchandise on credit. Results of Journal Entry Merchandise balance increases by $6,000. –> Increase in Assets Accounts Payable balance increases by $6,000.

What is the journal entry for accounts payable and inventory?

Answer: Following the transactional analysis, a journal entry is prepared to record the impact that the event has on the Lawndale Company. Inventory is an asset that always uses a debit to note an increase. Accounts payable is a liability so that a credit indicates that an increase has occurred.

What is the journal entry for closing stock?

Accounting and journal entry for closing stock is posted at the end of an accounting year. Closing stock is valued at cost or market value whichever is lower. It may be shown inside or outside a trial balance.