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to equity are credited.
Journal entry: Debit to Cash, Credit to Equity
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
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