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    reemmariam's Avatar
    reemmariam Posts: 1, Reputation: 1
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    #1

    Feb 21, 2011, 03:40 AM
    Accounting question
    Paid ling corp.one-half amount owed for office equipment.

    What should I do with this transaction?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Feb 21, 2011, 07:08 AM

    You have to know how much you owe for the office equipment. This question is telling you that you are paying cash for 1/2 of an amount that you owe for a purchase that you made on account. The amount owed should be given to you or enough information has to be given to you to calculate the amount you owe. If you have a subsidiary Accounts Payable ledger you can look in the Ling ledger to get the amount owed to them.

    Once you figure out what you owe you will either take the amount * 1/2 or divide the amount by 2 to get the amount of your payment.

    Your journal entry will be:
    Debit Accounts Payable for the amount paid
    Credit Cash for the amount paid
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