Question

Heaven purchased a new oven and paid cash Debit Cash; Credit Equipment-Oven $6,000 Debit Equipment-Oven; Credit...

Heaven purchased a new oven and paid cash

Debit Cash; Credit Equipment-Oven $6,000

Debit Equipment-Oven; Credit Cash $6,000

Debit Cash; Credit Capital, Heaven Jones $6,000

Debit Capital, Heaven Jones; Credit Cash $6,000

Debit Manufacturing Overhead; Credit Equipment-Oven $6,000

Debit Equipment-Oven; Credit Manufacturing Overhead $6,000

Debit Manufacturing Overhead; Credit Cash $6,000

Debit Cash; Credit Manufacturing Overhead $6,000

Debit Work In Process Inventory; Credit Cash $6,000

Debit Cash; Credit Work In Process Inventory $6,000
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Answer #1

When heaven purchases a new oven and cash is paid for it, Following journal entry will be made :

Journal

Account Title and Explanation

Debit

Credit
Equipment - Oven 6,000
Cash 6,000

Second option is the correct option.

Since increase in asset is debited, hence, equipment will be debited and decrease in assets is credited, cash will be credited.

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