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    ineedsomehelp1's Avatar
    ineedsomehelp1 Posts: 1, Reputation: 1
    New Member

    Oct 15, 2014, 09:10 PM
    Journal Entry Accounting
    I need help with a journal entry posting for my accounting assignment. I am asked to post this transaction to the journal entry:

    Oct. 3 Purchased repair equipment from Conklin Company, $4,400. Paid $600 down and the balance was
    Placed on account. Payments will be $200.00 per month for nineteen months. The first payment is due 11/1.

    The accounts I am supposed to use are "Accumulated depreciation, Repair Equipment" and "Depreciation Expense, Repair Equipment" in addition to "Office Equipment" and "Cash".

    I would really appreciate your help!
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member

    Oct 16, 2014, 10:01 AM
    Your accounts will be Cash, Repair Equipment, and Accounts Payable.

    You are paying cash of $600 and placing the rest of the cost of equipment on a loan.

    So your journal entry will be:
    Debit Repair Equipment for 4,400
    Credit Cash for $600
    Credit Accounts Receivable for the difference between your debit and credit amounts.

    The rest of the information is not relevant for the Oct 3 transaction.

    For the difference between your debits and credits you only have to 2 choices to choose from, accounts payable and notes payable, but the reason Accounts payable is used is because of the keywords in the problem is "balance placed on account"

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