Question

The journal entry to record the purchase of equipment for a $220 cash down payment and a balance of $640 due in 30 days would include Multiple Choice a debit to Equipment for $220 and a credit to Cash for $220. a debit to Equipment for $860, a credit to Cash for $220, and a credit to Accounts Payable for $640. debit to Equipment for $860 and a credit to Cash for $860. a debit to Equipment for $220 and a credit to Accounts Payable for $640.

Answer 1

Answer:

a debit to Equipment for $860, a credit to Cash for $220, and a credit to Accounts Payable for $640.

Explanation:

The complete journal entry to record the purchase of the equipment would be:

Dr Equipment 840

    Cr Cash 200

    Cr Accounts payable 640

Since the balance is due in 30 days, it will be recorded as accounts payable.

The cost of the equipment = $200 cash down payment + $640 debt = $840