A company made a $500 ordinary repair to a piece of equipment. The accountant debited this amount to the asset account, Equipment and credited Cash. Was this the correct entry and if not, why not? O a. Yes, this was the correct entry. O b. No, the correct entry would be a debit to Cash and a credit to Equipment. O c. No, the correct entry would be a debit to Maintenance and Repairs Expense and a credit to Cash. O d. No, the correct entry would be a debit to Cash and a credit to Maintenance and Repairs Expense.

A company made a $500 ordinary repair to a piece of equipment. The accountant debited this amount to the asset account, Equipment and credited Cash. Was this the correct entry and if not, why not? O a. Yes, this was the correct entry. O b. No, the correct entry would be a debit to Cash and a credit to Equipment. O c. No, the correct entry would be a debit to Maintenance and Repairs Expense and a credit to Cash. O d. No, the correct entry would be a debit to Cash and a credit to Maintenance and Repairs Expense.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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