QQuestionAccounting
QuestionAccounting
Owner paid $250 in advertising costs to the local paper. how is this recorded in a journal?
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Answer
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Step 1:: First, we need to identify the accounts involved in this transaction.
In this case, there are two accounts: Advertising Expense (an expense account) and Cash (an asset account).
Step 2:: Next, we record the transaction in a journal, using the following format:
| | Cash | | $$250$$ |
| Date | Account Title | Debit | Credit | | --- | --- | --- | --- |
Step 3:: We debit the Advertising Expense account because it is an expense account, and expenses are increased by debits.
We credit the Cash account because it is an asset account, and assets are decreased by credits.
Step 4:: The amount of the debit and the credit should always be equal, as shown in the above journal entry.
Final Answer
| Date | Account Title | Debit | Credit | | --- | --- | --- | --- | | [Insert date] | Advertising Expense | 250 | | | | Cash | | 250 |
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