Question

Review the transactions below and select the one that would be journalized in a general journal when specialized journals are used within the business.
A. Purchasing equipment by issuing a check
B. Receiving a cash payment from a customer
C. Purchasing inventory on account
D. Purchasing equipment by issuing a note payable

Answer 1

Answer:

The correct option is D,purchasing equipment by issuing a note payable

Explanation:

Issuing check to pay for equipment purchase,receipt of cash from a customer as well as purchase of inventory on account are all usual transactions that take place regularly within a business ,hence do not require any specialized journals in posting them in the books of account.

However,purchase of equipment by issuing a note a more complex transaction that seldom occur,it is important to reflect in the accounts in a special way in order to draw attention to it that it is a special transaction that should be handled different from other transactions