Double - account(an asset increases by $50,000 so it is...

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Double Entry Bookkeeping Under the double-entry bookkeeping system, the full value of each transaction is recorded on the  debit side of one or more accounts and also on the credit side of one or more accounts. Therefore,  the combined debit balance of all accounts always equals the combined credit balance of all  accounts. Suppose a new company obtains a long-term loan for $50,000 on August 1. The company's cash 
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Unformatted text preview: account (an asset) increases by $50,000, so it is debited for this amount. Simultaneously, the company's notes payable account (a liability) increases by $50,000, so it is credited for this amount. Both sides of the accounting equation increase by $50,000, and total debits and credits remain equal....
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