Recording T-accounts

Paula Gomes · #1 Feb 28, 2007, 10:07 AM

How should

I record the following transaction in T-account:
Purchase of $20,000 of equipment paying $18,600 cash and trading in old equipment with a recorded cost of $1,400.

Thank you for your help

Paula

KongTheKonqueror · Feb 28, 2007, 03:34 PM

You would need to use two separate t-accounts. In equipment, debit 20,000 and credit 1,400. Then in cash credit 18,600.



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