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Understanding the concept of Normal Balance is the key to preparing journal entries correctly. Define Normal Balance Transaction: Purchase $5000 equipment with cash What is
Understanding the concept of Normal Balance is the key to preparing journal entries correctly.
- Define Normal Balance
- Transaction: Purchase $5000 equipment with cash
- What is the normal balance of "Equipment" account?
- How would you Increase Equipment Account (Debit or Credit?)
- What is the normal balance of "Cash" Account?
- How would you decrease Cash Account (Debit or Credit?)
- Resulting Journal Entry?
- Provide explanation to one or more of your peers.
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Corporate Financial Accounting
Authors: Carl S Warren, Jeff Jones
16th Edition
0357510380, 978-0357510384
