Question

Which of the following journal entries would be recorded if a business purchases equipment for $2,500 cash and supplies for $450 cash?



Group of answer choices

Equipment	2,950
Cash		2,500
Supplies		450



Cash	2,500
Equipment	450
Accounts receivable		2,950



Cash	2,950
Equipment		2,500
Supplies		450



Equipment	2,500
Supplies	450
Cash		2,950

Answer 1

Cost of equipment = $2,500

Cost of supplies = $450

Equipment and supplies were purchased for cash.

The given transaction will increase equipment and supplies account balances and decreases cash.

Increase in assets is debited and hence equipment and supplies will be debited.

Decrease in assets is credited and hence cash will be credited.

Fourth option is correct.

Equipment	2,500
Supplies	450
Cash		2,950

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