Financial Act Demonsration Problem #1

Increases to equity are credited journal entry debit

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Unformatted text preview: ses to equity are credited. Journal entry: Debit to Cash, Credit to Equity Dr. 10,000 Common Stock (equity) Cr. 10,000 Post to the general ledger: Common Stock Cash 1/1 10,000 1/1 10,000 January 2: Hires a part-time, administrative assistant, for $250 a week salary. There is no business transaction here! Although this is important information, there is no expense recorded until Cainas Company, CPAs has incurred an expense (owes the asst. for her work. No entries! January 2: Signs three year lease to rent commercial space, and pays two months of rent, $800 in advance. 1. 2. 3. Tran...
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This note was uploaded on 01/22/2014 for the course ACG 2021 taught by Professor Linkovich during the Spring '08 term at University of South Florida - Tampa.

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