I have a transaction that I know requires me to do more than one thing when recording it into my journal entries. I am doing a Project for my financial Accounting course and I would appreciate any kind of help. Thanks!


Here's the transaction...

Purchased office equipment for $15,600. Paid $3,600 cash with the balance financed with the bank (three-year note payable, interest at 8% APR) The office equipment has a 5-year useful life.

Purchase of Equipment:
Dr. Equipment 15,600
Cr. Cash 3,600
Cr. Notes Payable 12,000