(1) a location (such as "Cash" or accounts Payable"), (2) a debit side (i.e., left-side obelisk for record account balance changes), and also (3) a credit side (i.e., a right-side tower for recording account balance changes). Resource documents are the details sources used to record changes to account balances (e.g., invoices are resource documents). Accounts are not source document.

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a day (for a chronological record), at least one debited account complied with by at least one attributed account, and the date. A journal might be accompanied v a short explanation that the transaction. The journal never report the accounts" balances; the ledger reports accounts" balances.
the company incurs wage expense. Because the agency records wages (i.e., fairy expense) once it pays employees their wages, this transaction reduces heritage (e.g., the reduces cash) and also it reduce stockholders" equity (i.e., it increases wage expense which reduces preserved earnings and also stockholders" equity).
Which pair the accounts adheres to the rule of debits and credits in relationship to increases and also decreases in the opposite manner?
If a previously unrecorded price is recorded once it is paid v cash recording the the transaction will
the agency pays cash therefore its assets decrease which affects the balance sheet. Also, it increases the amount recorded in its dividend account and this will mitigate retained earnings and also appear ~ above the retained revenue statement. Dividends space not expenses; the income statement will not it is in affected.
assets increase and liabilities increaseReceiving cash indigenous a customer prior to the agency provides the merchandise or performs services being marketed to the customer creates an obligation or a legal responsibility to the company. We contact this liability "unearned revenue." liabilities increase and assets (i.e., cash) increase.

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expenses and also assets details accounts usually have debit balances, including assets, expenses, and also dividends. Liabilities, equities, and also revenues generally have credit transaction balances.
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