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In a general journal, the issuance of stock is credited to the appropriate equity account, typically "Common Stock" or "Preferred Stock," reflecting an increase in equity. Simultaneously, the cash account or other asset account receiving the funds is debited, indicating an increase in assets. This dual entry maintains the accounting equation, where assets equal liabilities plus equity.
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What is the journal entry for prepaid revenue?
prepaid revenue is debited and revenue is credited
Why cash is debited and capital is credited in journal of accounting?
1. Cash is debited because business cash is increased and capital is credited because it is the liability of the business towards its owner to return back at the time of dissolution of business.
What is the journal entry for furniture purchased?
[Debit] Furniture [Credit] Cash / bank
What is entered in the general journal?
The general journal records all financial transactions of a business in chronological order. Each entry typically includes the date of the transaction, accounts affected, amounts debited and credited, and a brief description of the transaction. This serves as the initial point of entry before the data is transferred to the general ledger for further categorization and reporting.
What is the journal for the telephone expenses?
The journal for telephone expenses is typically recorded in the general journal or a specialized expense journal. The entry would include the date, the account debited (telephone expenses), the account credited (cash or accounts payable), and a brief description of the transaction. This helps track the costs associated with telephone services for accurate financial reporting.
What is the journal entry for prepaid revenue?
prepaid revenue is debited and revenue is credited
Why cash is debited and capital is credited in journal of accounting?
1. Cash is debited because business cash is increased and capital is credited because it is the liability of the business towards its owner to return back at the time of dissolution of business.
What is the journal entry for furniture purchased?
[Debit] Furniture [Credit] Cash / bank
A sole proprietor has incurred as expense out of his personal accont - what will be the journal entry?
The expense account will be debited and capital will be credited by the same ammount
How do you reverse a journal entry?
Change the signs on the original entry, ie. change the Debit to credit and vice-versa then re-post the journal.
What is entered in the general journal?
The general journal records all financial transactions of a business in chronological order. Each entry typically includes the date of the transaction, accounts affected, amounts debited and credited, and a brief description of the transaction. This serves as the initial point of entry before the data is transferred to the general ledger for further categorization and reporting.
What is the journal for the telephone expenses?
The journal for telephone expenses is typically recorded in the general journal or a specialized expense journal. The entry would include the date, the account debited (telephone expenses), the account credited (cash or accounts payable), and a brief description of the transaction. This helps track the costs associated with telephone services for accurate financial reporting.
What is the journal entry for payment of accrued expense?
debit accrued expensescredit cash / bank
Journal entry for salary advance paid?
When an employee receives an advance on pay an asset account called employee advances is debited and the cash paid out is credited. When the advance is repaid then the applicable expense accounts are debited and the advance account is credited.
What is the journal entry to write off an old server?
dr loss on asset retirement dr accumulated depreciation cr asset-server if sold cash would be debited and loss would be debited or gain credited
When the sales journal's column for accounts receivable and sales is totaled at the end of the month its total is debited where?
At the end of the month, the total of the accounts receivable column from the sales journal is debited to the Accounts Receivable account in the general ledger. Simultaneously, the total of the sales column is credited to the Sales Revenue account. This process ensures that the accounting records reflect the sales made on credit and the corresponding increase in receivables.
How do you post a journal entry for sale of a vehicle with depriciation?
The amount received for sale of the vehicle with depreciation is compared to the vehicle's net value and debited as a loss or credited as a gain.
