0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
If the effect of the debit portion of an adjusting entry is to increase the balance of an asset account describe the effect of the credit portion of the entry?
increase the balance of the liability account :)
Is AR a positive balance sheet entry that has a negative effect on Net Cash?
True
An expiration of a major industry patent would A increase barriers to entry B decrease barriers to entry C leave barriers to entry unaffected D increase supplier power E decrease supplier power?
E. decrease supplier power
Which side of a receivables ledger control account is cash refund to customers?
If you are having to refund a customer money from an account receivable that means that 1. They overpaid on their account (or) 2. An entry error was made and they were over charged. For example 1. Say Customer X paid you $500 on their account but only owed you $50. The original entry is going to give their AR a (credit balance) of $450. Because AR is an account receivable it maintains a Debit balance. To correct this and your company plans on paying them cash back (issuing a check), you will Issue the check for $450 and credit your cash account and debit their AR account. This entry will not effect revenue as it was an over payment and not actually recorded as Income. If it's just an entry error, then simply correct it with an adjusting entry. Since the original entry is recorded as AR (debit) and Revenue (credit), reverse the entries for the adjustment amount noting why the adjusting entry was made. Since this was an entry error more than likely Income (revenue) was entered wrong as well.
What is the journal entry in the increase of authorized capital stock?
debit Unissued Common Stock credit Authorized Common Stock
Will an increase in common stock require a journal entry?
Yes, it requires a journal entry as follows:debit cash / bank / assetscredit share capital
Which reduces competition in an industry?
Patent laws, Freedom of entry for new firms, An increase in the number of producers , An increase in the number of buyers
What Entry will increases liability and revenue?
There is no way to increase Revenue and Liabilities in a single transaction. Another reason for this is the accounting equation.Assets = Liabilities + Owners EquityIn double entry accounting there must be a debit and a credit that equals. You want to "increase" liabilities and revenue with a single entry, this cannot be done because and increase in liabilities relies on a credit entry as does an increase in revenue.Assets maintain a Debit Balance, meaning they increase with a debit.Liabilities maintain a Credit Balance, meaning the increase with a credit.Owners Equity maintains a Credit Balance, increasing with credit.Revenue is an OWNERS EQUITY ACCOUNT and therefore increases with a credit.Say you desired to increase Liabilities $500 and Revenue $500 in a single entry, you couldn't because you'd need to "credit" liabilities $500 and "credit" revenue $500, but you MUST have a "debit" that equals the same amount of credits.
What is the journal entry to increase pension expense?
Debit pension expenseCredit cash / bank
How do you record journal entry to increase notes payable?
debit cashcredit notes payable
Why does your bank statement show a credit for an increase in your cash balance?
It's because the bank statement is written from the POV (bank's point of view). In the double entry system, a debit entry is an increase in an asset or expense/decrease in income or a liability while a credit entry is an increase in a liability or income/decrease in an asset or expense. When you pay money into the bank this increases the amount the bank owes you or decreases the amount you owe the bank. From the bank's point of view this means an increase in the amount they owe you (their liabilities have increased) or a decrease in the amount you owe them (their assets have decreased). Hence, an increase in your cash balance at the bank is a credit entry on the statement your bank sends you.
What are AR 15 Uppers used for?
AR 15 Uppers are used for killing various things. Uppers are the barrel of the gun. They increase accuracy and add customization towards the gun in question.
