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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

LO4 To record the payment of rent expense, an accountant would

  1. (a) debit Cash; credit Rent Expense.
  2. (b) debit Rent Expense; debit Cash.
  3. (c) debit Rent Expense; credit Cash.
  4. (d) credit Rent Expense; credit Cash.

To determine

Record the payment of rent expense.

Explanation

Justification for the incorrect answer:

Option (a) is incorrect because expense is increases and cash is decreases. Hence, debit rent expense and credit cash.

Option (b) is incorrect because expense is increases and cash is decreases. Hence, debit rent expense and credit cash.

Option (d) is incorrect because expense is increase and cash is decreases. Hence, debit rent expense and credit cash.

Justification for the correct answer:

Option (c)

Journal entry for payment of rent expense:

Accounting equation: The following is the accounting equation for the entry:

  Assets=Liabilities+Owner's Equity(Cash)=

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