A Company pays a deposit toward the lease of its building. The entry to record that transaction should be: Group of answer choices A debit to cash and a credit to deposits A debit to deposits and a credit to cash

A Company pays a deposit toward the lease of its building. The entry to record that transaction should be: Group of answer choices A debit to cash and a credit to deposits A debit to deposits and a credit to cash

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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Question

A Company pays a deposit toward the lease of its building. The entry to record that transaction should be:

Group of answer choices

A debit to cash and a credit to deposits

A debit to deposits and a credit to cash

Expert Solution

Step 1

The journal entry for a company that makes a deposit toward the leasing of its building is:

Date	Account Titles	Debit	Credit
xxx	Deposits	xxx
	Cash		xxx

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