Question

An accountant has debited an asset account for $1,000 and credited a liability account for $500. What can be done to complete the recording of the transaction?

A) Nothing further must be done

B) Debit a stockholders' equity account for $500

C) Debit another asset account for $500

D) Credit a different asset account for $500

Answer 1

To complete the recording of the transaction, the accountant needs to credit a different asset account for $500.

Step-by-step explanation:

To complete the recording of the transaction, the accountant needs to credit a different asset account for $500. This will ensure that the accounting equation remains balanced, as debits and credits must always be equal. In this case, the initial debit of $1,000 to the asset account needs to be offset by a credit of $500 to another asset account, resulting in a net debit of $500.