Stear Corp. pays rent of $1,000 for its warehouse in cash at the beginning of the month of March. What will be the journal entry for this transaction on the same day? a.
Rent Account (Debit) – 1,000; Bank Account (Credit) – 1,000
B.
Rent Account (Debit) – 1,000; Cash Account (Credit) – 1,000
C.
Warehouse Account (Debit) – 1,000; Bank Account (Credit) – 1,000
D.
Warehouse Account (Debit) – 1,000; Cash Account (Credit) – 1,000

Cash Account (debit) 1,000

Cash in Bank Account (Credit) 1,000

Explanation:

Given

Amount = \$1,000

Required

Write a journal entry

In this case:

The company deposits $1000.

This means that, $1000 will be debited from the company's cash account.

So, the entry for that will be:

Cash Account (debit) 1,000

In the same vein, $1000 will be credited into the company's bank account.

So, the entry for that will be:

Cash in Bank Account (Credit) 1,000

Explanation: