Q11. Sale of merchandise Entity A sold merchandise at the price of $26,000 on account. Prepare a journal entry to record this transaction. A11. Sale
Q10. Purchase of merchandise Entity A purchased 100 units of merchandise at $8,300 on account. Prepare a journal entry to record this transaction. A10. Purchasing
Q9. Cash payment What does a journal entry look like when cash is paid? A9. A decrease in cash is recorded on the credit side
Q8. Cash receipt What does a journal entry look like when cash is received? A8. An increase in cash is recorded on the debit side
Q7. Balancing of a journal entry When does a journal entry balance? A7. A journal entry balances when the sum of debit amounts is same
Q6. Normal balances On which side do assets, liabilities, equity, revenues and expenses have normal balances? A6. Normal balance of an account refers to the