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    Paula Gomes's Avatar
    Paula Gomes Posts: 6, Reputation: 1
    New Member
     
    #1

    Feb 28, 2007, 12:07 PM
    Recording T-accounts
    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's Avatar
    KongTheKonqueror Posts: 75, Reputation: 13
    Junior Member
     
    #2

    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's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
     
    #3

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

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