journal entry worksheet\n1\non december 31, the company purchases equipment for $10,000 and pays for the…
journal entry worksheet\n1\non december 31, the company purchases equipment for $10,000 and pays for the purchase in cash.\nnote: enter debits before credits.\ndate general journal debit credit\ndecember 31
Answer
Explanation:
Step1: Identify accounts affected
The company acquires equipment (an asset) and pays cash (also an asset). Equipment increases and cash decreases.
Step2: Apply debit - credit rules
Assets increase with debits and decrease with credits. So, debit the Equipment account and credit the Cash account.
Step3: Record amounts
The amount of the purchase is $10,000 for both debit and credit.
Answer:
| Date | General Journal | Debit | Credit |
|---|---|---|---|
| December 31 | Equipment | $10,000 | |
| December 31 | Cash | $10,000 |