Jenna Jeffries started her business baking dog treats by investing cash of $1000.During May its first month of operations Jenna's Barkery had revenues of $3000 all of which was collected in cash.She paid her assistant $1000 in cash and purchased $200 of supplies on account.The business paid cash dividends of $500.Use the following tabular analysis to determine how Jenna will record the payment to her employee.

Question

Quizplus · Accepted Answer

Jenna pays her assistant $1000 in cash, which means her cash account decreases by $1000. In addition, since she paid her assistant for work, this $1000 payment is considered an expense and should increase her expenses account by $1000. Therefore, the correct option is to decrease cash by $1000 and increase expenses by $1000.

Jenna Jeffries Started Her Business Baking Dog Treats by Investing