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vova2212 [387]
3 years ago
10

Which of the following journal entries is recorded correctly and in the basic format? a. Salaries and Wages Expense 550, Cash 1,

500, Advertising Expense 950 b. Salaries and Wages Expense 550, Advertising Expense 950, Cash 1,600 c. Cash 1,500, Salaries and Wages Expense 550, Advertising Expense 950 d. Salaries and Wages Expense 550, Advertising Expense 950, Cash 1,500
Business
1 answer:
Yuki888 [10]3 years ago
5 0

Answer:

d.  Salaries and Wages Expense 550, Advertising Expense 950, Cash 1,500

Explanation:

Whenever a new entry is posted firstly the accounts which are debited are entered.

Secondly the accounts which are credited are posted.

And, the total of debit and total of credit shall always be same, so that the entry is recorded properly.

As an expense, it reduces income and is always debited.

And as for settling the expenses cash is paid, cash being an asset when reduced will be credited.

Total expenses debited = Salaries and Wages + Advertising Expense = 550 + 950 = 1,500

Therefore, as against it cash paid = $1,500 shall be credited.

Cash = $1,500

Thus, correct option is d.

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