Looking at Exhibit 2-16A, an increase in dividends is a debt, while a decrease in an asset is a credit. Remember that dividends are a negative element of stockholders' equity decreases. So in this case, dividends decreases equity with a debit. Cash (an asset) decreases with a credit $1,500 is posted to the debit (left) side of the dividends T-account $1,500 is posted to the credit (right) side ofthe cash account as follows:
Select one of the nine financial transactions of the medical practice of Bob Morn, P.C. Develop a journal entry with date and explanation. Post it. The next requirements is to select one of the five questions (a-e) and post an answer. Do show your computations.