Ask Experts Questions for FREE Help !
Ask
    ineedsomehelp1's Avatar
    ineedsomehelp1 Posts: 1, Reputation: 1
    New Member
     
    #1

    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
     
    #2

    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"

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Journal entry for Accounting help. [ 3 Answers ]

March 1) Jean kelly opened a dance school,called jeans dance studio, by depositing $15,000 into the bacnk account. 2) paid three months' rent in advance, $1,800. 4) Hired a part time assistant, to be paid 250 per week, starting next week. 6) Purchased sound equiptment for 2,000. Paid $400...

Accounting journal entry [ 8 Answers ]

A credit sale is made on July 10 for $900,terms 2/10,n/30. On July 12, $100 of goods are returned for credit. Give the journal entry on July 19 to record the receipt of the balance due within the discount period.

Accounting.journal entry [ 9 Answers ]

I need to make the following journal entry, how would I go about doing it? Thanks! My company borrowed cash from a bank, 500,000 with an interest rate of 6% not due in 4 years.

Journal entry for Accounting [ 2 Answers ]

Interest earned on saving account, but not recorded what is the journal entry


View more questions Search