Question

On January 15, 2016, Bravo Company purchased $4,000 of construction supplies, on account, from the Zulu Company. Prepare Bravo Company's general journal entry (without explanation). If no entry is required then write "No Entry Required."

Answer 1

Answer:

Construction Supplies (Dr.)  $4,000

Accounts Payable (Cr.)  $4,000

Explanation:

When The Bravo Company purchases construction supplies of $4,000 from The Zulu then Journal entry is required to record this transaction. The transaction will have Construction Supplies or Purchases account debited with $4000 whereas Accounts Payable is credited with $4000 because the supplies are purchased on account.