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Cash is an asset that decreases on the credit side. Note that this example has only one debit account and one credit account, which is considered a simple entry. Equity (the difference between assets and liabilities orwhat it owesto the owners). C) Sandwich constructive feedback between positive comments. The difference $34,000 $4,000 = $30,000. Calculate the balances in each of the following accounts. B) Ensure that team members understand the larger goals of the company The balance at that time in the Common Stock ledger account is $20,000. What does a journal entry look like when cash is received? The company purchased supplies, which are assets to the business until used. Solved Brenda Jo Smith is an architect who operates her own - Chegg February 9, 2018 accta [Q1] Owner invested $700,000 in the business. Metro received $5,000 from customers for work we have already billed (not any new work). See Answer DATE 1 Hired a secretary-receptionist at a salary of 700 per week payable monthly. The corporation paid $900 to its employees. Cash is decreasing, so total assets will decrease by $300, impacting the balance sheet. You will notice that the transaction from January 3 is listed already in this T-account. C) Have regularly scheduled performance reviews. a. Pita invested P5,000,000 cash in theinn.Cash OwnersEquityb. May 7 Hazel received $1,000 in advance for services to be completed by the end of the month. Since each transaction affecting a business entity must be recorded in the accounting records based on a detailed account (remember, file folders and the chart of accounts from the previous section), analyzing a transaction before actually recording it is an important part of financial accounting. We know from the accounting equation that assets increase on the debit side and decrease on the credit side. Cash is decreasing, so total assets will decrease by $3,600, impacting the balance sheet. There are debit and credit columns, storing the financial figures for each transaction, and a balance column that keeps a running total of the balance in the account after every transaction. consent of Rice University. Explain why you debited and credited the accounts you did. May 15 Hazel hired an assistant to help her part time in the office. 1. 1 owner invested 20000 cash into the business from - Course Hero Lena Fohn is a licensed accountant.