Chapter 2: QuickBooks Chart of Accounts and Chapter 3: QuickBooks Transactions

Additionally, please refer to Chapter 2 in your Cengage Accounting eText, accessible from the eText link in the Course Navigation Panel to the left of your screen.

Requirement 1:

ABC Company adheres to a policy of depositing all cash receipts in a bank account and making all payments by check. The cash account as of December 31 has a credit balance of $1,850, and there is no undeposited cash on hand. (a) Assuming that no errors occurred during journalizing or posting, what caused this unusual balance? (b) Is the $1,850 credit balance in the cash account an asset, a liability, owner's equity, a revenue, or an expense?

Requirement 2:

Assume that DEF Company erroneously recorded the payment of $7,500 of owner withdrawals as a debit to Salary Expense. (a) How would this error affect the equality of the trial balance? (b) How would this error affect the income statement, statement of owner's equity, and balance sheet?

Responses to Classmates:

Please share how you learned the rules of debit and credit with your classmates. Also, please provide one example of a journal entry, in good form.

Response to Instructor:

Please check your thread for questions or comments from me and be sure to provide a comprehensive response, as requested.

Writing:

Please make sure that your initial post contains a properly cited reference. Please use APA style. Information for your posts should come from your Cengage Accounting eText and from your QuickBooks eText. Additionally, check your spelling and proofread your post before you hit the submit button.