The correct journal entry to record the payment of the purchase of equipment made on account is?

Question

a: Debit Cash – Credit Equipment
b: Debit Equipment – Credit Accounts Payable
c: Debit Equipment – Credit Cash
d: Debit Accounts Payable – Credit Cash

Answer 1

The correct journal entry to record the payment of the purchase of equipment made on account is
(b) Debit Equipment – Credit Accounts Payable

If the purchase had been made for cash, then the journal entry is
Debit Equipment – Credit Cash