Hi all, i have a problem with homework assignment, and need your help.
On July 12, purchased equipment on account for $4,500.
On July 21, paid a portion of the amount owed for equipment purchased on July 12, $2,400.
My question is how you journalize those two transaction in a two-column journal ?
I know how to record the transaction on July 12, but the transaction on July 21 because it must be balance for the two-column.
Thx inadvance!
2006-06-15 11:49:40 · 4 answers · asked by Anonymous in Education & Reference ➔ Homework Help
Date Particular Debit Credit
12 July Equipment 4500
Shop A/c payable 4500
21 July Shop A/C Payable 2400
Bank 2400
That's it. The balance will than be dealt with in the ledger A/C. You don't balance it here. Instead of Shop A/C Payable you can also right the name of creditor.
2006-06-15 12:31:32 · answer #1 · answered by Taimoor 4 · 0⤊ 0⤋
July 12
Debit (+) Capital Equipment $4500
Credit (-) A/P $4500
July 21
Debit (+) A/P $2400
Credit (-) Cash $2400
2006-06-15 18:56:19 · answer #2 · answered by jmtmeyer 1 · 0⤊ 0⤋
The first entry, as you know, is
DR Equipment
CR Payables
The second entry decreases your payables in exchange for cash payment, so it's
DR Payables
CR Cash
2006-06-15 18:55:59 · answer #3 · answered by -j. 7 · 0⤊ 0⤋
You will simply debit Creditor (Where ever you got the equip) and Credit bank.
2006-06-15 18:59:39 · answer #4 · answered by Lawrence M 2 · 0⤊ 0⤋