what is the correct accounting treatment for the april 14th transaction: paid $250 cash for rent?\nthis…

what is the correct accounting treatment for the april 14th transaction: paid $250 cash for rent?\nthis question is worth 1 point(s)\ndebit rent expense $250,\ncredit cash $250\ndebit rent expense $250,\ncredit accounts payable $250\ndebit cash $250, credit rent\nexpense $250\ndebit accounts payable $250,\ncredit cash $250

what is the correct accounting treatment for the april 14th transaction: paid $250 cash for rent?\nthis question is worth 1 point(s)\ndebit rent expense $250,\ncredit cash $250\ndebit rent expense $250,\ncredit accounts payable $250\ndebit cash $250, credit rent\nexpense $250\ndebit accounts payable $250,\ncredit cash $250

Answer

Brief Explanations:

When paying rent in cash, Rent Expense (an expense account) increases (debited as per the rule that expenses are debited when they increase) and Cash (an asset account) decreases (credited as per the rule that assets are credited when they decrease). Accounts Payable is used when there is a liability to pay later (not in this case as it's a cash payment). Also, Cash should not be debited when it's being paid out (it's decreasing, so credited) and Rent Expense should not be credited (it's increasing, so debited).

Answer:

Debit Rent Expense $250, Credit Cash $250