Financial Act Demonsration Problem #1

1 2 3 transaction paying debt that is owed in cash

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Unformatted text preview: ayable is decreasing (because the debt is no longer owed) and cash is decreasing. Rules: Decreases to liability accounts are debited, decreases to asset accounts are credited. Journal entry: Debit to Accounts Payable, Credit to Cash Dr. Jan 25 Accounts Payable Cash Cr. 150 150 Jennifer Cainas ACG 2021 4 Post to the general ledger: Cash 1/1 10,000 1/2 800 1/4 750 1/25 150 Accounts Payable 1/25 150 1/4 75C 1/6 150 January 31: J. Cainas withdrew $500 from the business for personal use. 1. 2. 3. Transaction: Withdrawing cash from the business for personal use. Is not an expense of the business because it is not salary; it is taking capita...
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