I need help with a T-account for my accounting class!! ASAP!!?

Question

I am in the middle of setting up my t-accounts and I want to know where this is placed:
Purchased office equipment for $575, paid cash $175 with the balance due in 30 days.
I am stumped on this one. what t-accounts would you use in a problem like this????? Please help me!

Is it ok to use 3 accounts or is it just 2 for this problem???

Answer 1

You need 3 T-accounts for this problem. Your journal entries are:
Dr Office equipment 575
Cr Cash 175
Cr A/cs Payable 400

Debits go on the left side of the T, credits go on the right side. Make sure your debits equal your credits.

Answer 2

T accounts for Cash, Office equipment and Accounts payable. Left side is debit, right side is credit. Credit cash for 575, debit office equipment for 575 and credit accounts payable whatever the balance is