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17 March, 07:16

An accountant has debited an asset account for $1,300 and credited a liability account for $500. Which of the following would be an incorrect way to complete the recording of the transaction?

A. Credit an asset account for $800.

B. Credit another liability account for $800.

C. Credit a Stockholders' account for $800.

D. Debit a Stockholders' account for $800.

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Answers (1)
  1. 17 March, 08:27
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    D. Debit a Stockholders' account for $800

    Explanation:

    In this question we use the accounting equation i. e shown below:

    Total assets = Total liabilities + Total stockholder equity

    where,

    Debited Total assets = $1,300

    Credited Total liabilities = $500

    So, the total stockholder equity is

    = $1,300 - $500

    = $800

    So, the incorrect way is to debit a stockholder equity for $800
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