Question

Jackson's Programming paid its June rent of $500 cash. Demonstrate how to use the accounting equation to record the transaction by completing the following sentence.
Jackson would decrease _________ and increase ________ in the accounting equation.

Answer 1

Answer:

Cash account; rent expense

Explanation:

The journal entry to record the rent expense for June month is shown below:              

Rent expense A/c Dr $500

       To Cash A/c $500

(Being the payment of rent for cash is recorded)

Since the rent is an expense which increases the expense account by $500 ad the cash is also paid which reduced the cash balance by $500 so the expense is increased and the cash is decreased