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jeremy500071
Oct 30, 2008, 08:26 AM
This is how the question reads. Purchased used atuomobile for 16,500 and paid cash payment of 1500 dollars and put the gave the rest on notes payble. Does the T account look like this.

Automobile Notes Payable Accounts Payable
Debit Credit Debit Cedit Debit Credit
16,5000 15,000 1500

pready
Oct 30, 2008, 08:35 AM
Debit Auto for 16,500
Credit Cash for 1,500
Credit Notes Payable for 15,000

YOu will have 3 T-Accounts: One for Auto; One for Cash; and One for Notes Payable

Auto: on the left side of the T will be an amount of 16,500
Cash: on the right side of the T will be an amount of 1,500
Notes Payable: on the right side of the T will be an amount of 15,000