On August 15, we purchased equipment for $5,000. We paid $1,000 down with the remainder to be paid later. What account (s) would we credit when we journalize this entry? a. Cash and accounts payableb. Equipmentc. Equipment and accounts payabled. Accounts payable

Question

Business

Pixie Stick

8 June, 01:06

On August 15, we purchased equipment for $5,000. We paid $1,000 down with the remainder to be paid later. What account (s) would we credit when we journalize this entry? a. Cash and accounts payableb. Equipmentc. Equipment and accounts payabled. Accounts payable

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Answers (1)

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Luna Terry · Answer 1

a. Cash and accounts payable

Explanation:

The journal entry to record this given transaction is shown below:

Equipment A/c Dr $5,000

To Cash A/c $1,000

To Account payable A/c $4,000

(Being the equipment is purchased for cash and on account)

Since the equipment is purchased for $5,000 that increase the asset account and the cash is paid for $1,000 so it would be credited plus the remaining amount is given on credit basis so we credited the account payable account