Poppies for Life Corp has debited an asset account for 1000

Poppies for Life Corp. has debited an asset account for $1,000 and credited a liability account for $500. Choose all of the correct ways which could be used to record the transaction Credit a stockholders\' equity account for $500 Credit an asset account for $500 Debit a stockholders\' equity account for $500 Credit another liability account for $500 Debit a revenue account for $1,000

Solution

Now assets account showing $500 debit balance. no we have to reduce it by $500 by crediting assets account, or we need to match assets = liabilities + equities by credit liability or equity for $500

ANswers are:

* Credit a stockholders\' equity account for $500

* Credit an asset account for $500

* Credit another liability account for $500