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    paulcrowley's Avatar
    paulcrowley Posts: 2, Reputation: 1
    New Member
     
    #1

    Sep 18, 2017, 12:12 PM
    Posting question
    If I hire a mechanic to fix machinery on 60 day terms, I increase accounts payable. What is the balancing transaction post for this event?
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
     
    #2

    Sep 18, 2017, 12:37 PM
    What do YOU think ?
    While we're happy to HELP we wont do all the work for you.
    Show us what you have done and where you are having problems..
    paulcrowley's Avatar
    paulcrowley Posts: 2, Reputation: 1
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    #3

    Sep 18, 2017, 12:40 PM
    An increase in AP is a debit. Do I need to create an asset account for machinery repairs for the credit?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    Ultra Member
     
    #4

    Sep 19, 2017, 11:38 PM
    Quote Originally Posted by paulcrowley View Post
    An increase in AP is a debit. Do I need to create an asset account for machinery repairs for the credit?

    Do you understand double entry accounting at all? Accounts payable is a liability and therefore a credit, machinery repairs is not an asset but an expense. There endith the lesson

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