George Bailey purchased equipment from M. Potter for $450,000, paying $35,000 cash as a down payment and financing the remainder

Question

3 years ago

8

. The correct journal entry to record this event is:

1 answer:

Lorico [155] · Answer 1 · 2022-05-23T09:44:54+03:00

6 0

Answer:

Equipment $450,000 (debit)

Cash $35,000 (credit)

Suppliers Loan $415,000 (credit)

Explanation:

George Bailey must recognize the Asset of Equipment, de-recognize the Assets of Cash and recognize the Suppliers Loan as above.