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For example, we may run out of cash, so the cash balance will be zero but the entire asset will never go to zero. So, at the end of the year after expenses, your total income would be R5 000. Then, you are going to debit your income summary for that total income amount. Suppose […]
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An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. The IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain, a Social Security number (SSN) from the Social Security Administration (SSA). […]
Since we credited the cash account, we must debit the expense account. However, there is a decrease in cash because we paid for the computer equipment. The process of recording transactions in the journal is referred to as journalizing. Here are numerous examples that illustrate some common journal entries. For example, if a company bought […]
