The chart of accounts for Doe Co. includes the following accounts: Cash, Accounts Receivable, Equipment, Accounts Payable, John Doe, Capital, John Doe, Drawing, Fees Earned, Salary Expenses, and Utilities Expense. On Feb. 1, the company received $50,000 cash from John Doe as an investment in the business. Indicate which account should be debited (1) and which account should be credited (2) for the $50,000 amount. JOURNAL page 2 DATE DESCRIPTION POST. REF. DEBIT CREDIT 2/01/18 (1) $50,000 (2) $50,000 Group of answer choices debit Cash; credit Fees Earned credit John Doe, Capital; credit Cash debit Cash; credit Accounts Payable debit Cash; credit John Doe, Capital
The chart of accounts for Doe Co. includes the following accounts: Cash, Accounts Receivable, Equipment, Accounts Payable, John Doe, Capital, John Doe, Drawing, Fees Earned, Salary Expenses, and Utilities Expense. On Feb. 1, the company received $50,000 cash from John Doe as an investment in the business. Indicate which account should be debited (1) and which account should be credited (2) for the $50,000 amount. JOURNAL page 2 DATE DESCRIPTION POST. REF. DEBIT CREDIT 2/01/18 (1) $50,000 (2) $50,000 Group of answer choices debit Cash; credit Fees Earned credit John Doe, Capital; credit Cash debit Cash; credit Accounts Payable debit Cash; credit John Doe, Capital
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The chart of accounts for Doe Co. includes the following accounts: Cash,
On Feb. 1, the company received $50,000 cash from John Doe as an investment in the business. Indicate which account should be debited (1) and which account should be credited (2) for the $50,000 amount.
JOURNAL page 2
|
DATE |
DESCRIPTION |
POST. REF. |
DEBIT |
CREDIT |
|
2/01/18 |
(1) |
|
$50,000 |
|
|
|
(2) |
|
|
$50,000 |
Group of answer choices
debit Cash; credit Fees Earned
credit John Doe, Capital; credit Cash
debit Cash; credit Accounts Payable
debit Cash; credit John Doe, Capital
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