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Paula Gomes
Feb 28, 2007, 12:07 PM
How should:confused: 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, 05:34 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.

CaptainForest
Feb 28, 2007, 09:05 PM
I agree with Kong.