December 2022

What does double entry mean?

Because the first account (Cash) was debited, the second account needs to be credited. Common stock is part of stockholders' equity, which is on the right side of the accounting equation. As a result, it should have a credit balance, and to increase its balance the account needs to be credited. There are no revenues because no delivery fees were earned by the company, and there were no expenses. Overall,...

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