Question

Make a General Journal

October 6 The company purchased state of the art document scanning and imaging equipment by paying $9,200 up front and financing the balance of $7,400 with a note payable to the bank.

7 The company purchased a 12 month insurance policy for $4,800. The policy is effective on October 1.

Answer 1

Journal Entry
Date	General Journal	Debit	Credit
06-10	Equipment	$16,600.00
	Cash		$9,200.00
	Note Payable		$7,400.00
	TO Record Purchase of Equipment
07-10	Prepaid Insurance	$4,800.00
	Cash		$4,800.00
	To Record Prepaid Insurance