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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
1/25 150 Accounts Payable
1/25 150 1/4 75C
1/6 150 January 31: J. Cainas withdrew $500 from the business for personal use.
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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