A company purchased equipment for use in the business at a cost of $36,000, one-fourth was paid in cash, and the company signed a note for the balance. The journal entry to record this transaction will include a:

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Business

Leticia

8 August, 01:33

A company purchased equipment for use in the business at a cost of $36,000, one-fourth was paid in cash, and the company signed a note for the balance. The journal entry to record this transaction will include a:

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Dominik Lawson · Answer 1

1. Dr Equipment 36000

Cr Cash 9000

Cr Notes payable 27000

(To record entry of equipment purchase on cash and on promissory note)

Explanation:

Equipment = 36000

Paid in cash = 36000 / 4 = 9000 and balance 36000-9000=27000 to be signed promissory note.