Question

On December 31, the company purchases equipment for $10,000 and pays for the purchase in cash. Complete the necessary journal entry by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.

Answer 1

Answer:

Date            General           Debit      Credit

                                                 $             $

Dec 31        Equipment        10000  

                   Cash                                 10000

Following are detail of the posting of equipment purchased

1) The $10,000 will be posted to the debit side of the Equipment Account.

2) The $10,000 will be posted to the credit side of the Cash Account