Journalize and explain the following...a company purchased supplies with a check of $950.

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Expert Solution

The journal entry to record this transaction is

Account Title	Debit	Credit
Supplies	950
Cash		950

Both supplies & cash are real accounts

For recording transcations pertaining to real accounts,the accounting rule is

Debit what comes in &

Credit what goes out.

so, under this we debit the supplies that have come in &

Credit Cash that has gone out

By recording as above,

the supplies account which normally has a debit balance , increases by this additional debit of $ 950 &

Cash that normally has a debit balance , decreases by $ 950 , due to the above crediting of the account

satisfying the double entry -effect of book-keeping--(every debit /credit should have a corresponding credit/debit)

Here, both supplies & cash have balances that are carried from period to period--so they will appear on the fiscal-year -end Balance sheet , as current assets.

ekkarill92 answered 1 year ago

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