The journal entry to record the purchase of equipment for a $210 cash down payment and...

The journal entry to record the purchase of equipment for a $210 cash down payment and a balance of $620 due in 30 days would include

Multiple Choice:

1. a debit to Equipment for $210 and a credit to Cash for $210.

2. a debit to Equipment for $830, a credit to Cash for $210, and a credit to Accounts Payable for $620.

3. debit to Equipment for $830 and a credit to Cash for $830

4. a debit to Equipment for $210 and a credit to Accounts Payable for $620

Expert Solution

1. Total Value of the equipment = Cash down payment + balance due

= $210+$620 = $830

Hence asset should be recorded for $830

2. Cash down payment is cash outflow, hence cash account to be credited for $210

3. Remaining amount payable to the vendor is $620. Hence credit of $620 to accounts Payable

The entry will be

Particulars	Debit	Credit
Equipment A/c Dr.	$ 830.00
Cash A/c Cr.		$ 210.00
Account Payable A/c Cr.		$ 620.00

Hence the answer is point 2. a debit to equipment for $830, a credit to cash for $210, and a credit to Accounts Payable for $620.

ekkarill92 answered 2 years ago

prepare the journal entry to record payment of the note at maturity

Question: On November 7, 2017, Mura Company borrows $160,000 cash by signing a 90-day, 8% note payable with a face value of $160,000. (1) Compute the accrued interest payable on December 31, 2017, (2) prepare the journal entry to record the accrued interest expense at December 31, 2017, and (3) prepare the journal entry to record payment of the note at maturity

1. The journal entry to record the payment at maturity of an interest-bearing note is A....

1. The journal entry to record the payment at maturity of an interest-bearing note is A. debit Accounts Payable; credit Cash B. debit Notes Payable and Interest Receivable; credit Cash C. debit Notes Payable and Interest Expense; credit Cash D. debit Cash; credit Notes Payable 2. The entry to record the issuance of common stock at a price above par includes a debit to A. Common Stock B. Paid-In Capital in Excess of Par—Common Stock C. Cash D. Organizational Expenses...

Prepare the journal entry to record the payment of interest expense on December 31, 2017.

Question: (Fair Value Hedge) Sarazan Company issues a 4-year, 7.5% fixed-rate interest only, nonprepayable $1,000,000 note payable on December 31, 2016. It changes the interest rate from a fixed to variable rate and enters into a swap agreement with M&S Corp. The swap agreement specifies that Sarazan will receive a fixed rate at 7.5% and pay variable with settlement dates that match the interest payments on the debt. Assume that interest rates have declined during 2017 and that Sarazan...

3. Prepare the journal entry to record receipt of payment by Hamada LLC if the spot...

3. Prepare the journal entry to record receipt of payment by Hamada LLC if the spot rate on dirhams was 4.75 dirhams/GBP on April 2, 2020. Suppose that on February 1, 2020, Victoria, Plc., a British company, makes a sale and ships goods to Hamada, LLC, an Emirati customer, for 100,000 (GBP). However, it is agreed that Hamada will pay in dirhams on April 2, 2020. The exchange (spot) rate as of February 1, 2020 is 5 dirhams per Great...

Prepare the necessary journal entry to record the purchase of $100 of supplies on account:

This questions are for MULTIPLE CHOICE and CalculationREV #3 September 2008Prepare the necessary journal entry to record the purchase of $100 of supplies on account:The steps in an accounting cycle can be best described as:Journalize, Post, prepare Unadjusted trial balance, prepare financial statements, closeJournalize, Post, prepare Unadjusted trial balance, prepare adjusting entries, prepare adjusted trial balance, prepare financial statements, close, prepare post closing trial balanceAnalyze Transactions, Journalize, Post, prepare Unadjusted trial balance, prepare adjusted trial balance, prepare financial statements, close,...

RECORD IN JOURNAL ENTRY FORM 1. Record the journal entry for paying off a supplier invoice...

RECORD IN JOURNAL ENTRY FORM 1. Record the journal entry for paying off a supplier invoice of $10,000 for raw materials on September 28th: 2. Record the journal entry for receive cash from a new shareholder who gave your company $300,000 in exchange for 3,000 shares of common stock, where the current market price is $100 per share. 3. Your company wants to expand your company to Seattle and lease office space downtown. You find an office building where you...

Using a periodic inventory system, the buyer’s journal entry to record the payment for merchandise within...

Using a periodic inventory system, the buyer’s journal entry to record the payment for merchandise within the discount period includes a: Select one: A. Debit to Cost of Goods Sold B. Credit to Purchase Discounts C. Debit to Inventory D. Credit to Accounts Payable

1. Prepare the journal entry to record the purchase of 1,000 shares of treasury stock at...

1. Prepare the journal entry to record the purchase of 1,000 shares of treasury stock at $10 per share. 2. Prepare the journal entry to record the issuance of 1,000 shares of $3 par value preferred stock at $15 per share. 3. Prepare the journal entry to record the issuance of 1,000 shares of $2 par value common stock at $10 per share.

JOURNAL ENTRY WORKSHEET a(1). Record the cash sales of $620,000. a(2). Record the cost of goods...

JOURNAL ENTRY WORKSHEET a(1). Record the cash sales of $620,000. a(2). Record the cost of goods sold of $289,350. b(1). Record the return by a customer of unsatisfactory merchandise that was in perfect condition. A cash refund of $5,400 was given to the customer. b(4). Record the merchandise returned by the customer back into inventory. The original cost of the merchandise was $3,500. c(1). Record the sales on account of $11,400 on terms 2/10, n/30. c(2). Record the cost of...

Paid electricity for the month $1200 cash. The journal entry to record the transaction is: Select...

Paid electricity for the month $1200 cash. The journal entry to record the transaction is: Select one: a. debit, cash $1200 and credit, electricity expense $1200. b. debit, electricity payable $1200 and credit, electricity expense $1200. c. debit, electricity expense $1200 and credit, cash $1200. d. debit, cash $1200 and credit, electricity payable $1200.

Question