An accountant has debited an asset account for $1,300 and credited a liability account for $500. Which of the following would be an incorrect way to complete the recording of the transaction?

A. Credit an asset account for $800.
B. Credit another liability account for $800.
C. Credit a Stockholders' account for $800.
D. Debit a Stockholders' account for $800.

The incorrect way to complete the recording of the transaction D. Debit a Stockholders' account for $800

Here we have to used the accounting equation.

Total assets = Total liabilities + Total stockholder equity

Here

We have to Debited Total assets = $1,300

And, Credited Total liabilities = $500

Therefore, the total stockholder equity is

= $1,300 - $500

= $800

Therefore, the option d is correct.

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D. Debit a Stockholders' account for $800

Explanation:

In this question we use the accounting equation i.e shown below:

Total assets = Total liabilities + Total stockholder equity

where,

Debited Total assets = $1,300

Credited Total liabilities = $500

So, the total stockholder equity is

= $1,300 - $500

= $800

So, the incorrect way is to debit a stockholder equity for $800

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