Joshua Scott purchase equipment for $40,000 on account. How would the journal entry for this transaction be entered in the journal?
A)
Equipment.
40,000
Account
Receivable.
40,000
B)
Cash.
40,000
Equipment.
40,000
C)
Equipment.
40,000
Cash.
40,000
D)
Equipment.
40,000
Account
Payable.
40,000
The Journal Entry For The Purchase Of equipment For $40000 on Account Is
D.
Equipment.
40,000
Account
Payable.
40,000
Since Equipment Is real Account The rule is Dr what Comes in So The equioment is coming into the business
and as we are purchasing equipment the accounts Payable is Credited
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