Question: The debit goes to reduce retained earnings because the company has no current balance in contributed surplus. Contributed surplus cannot go into a debit? balance;

The debit goes to reduce retained earnings because the company has no current balance in contributed surplus. Contributed surplus cannot go into a debit? balance; if it were to be in a debit? position, it would have to be called "contributed deficit," which defies the definition because one cannot contribute a negative amount

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