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Anestetic [448]
3 years ago
13

The company pays cash for a piece of equipment. the list price was $9,100, but after negotiation, the final purchase price was $

8,700.
Business
1 answer:
svp [43]3 years ago
8 0

Answer:

this question is part of a longer question where you had to state how this transaction affects the accounting equation of the company:

the journal entry would be

Dr Equipment 8,700

    Cr Cash 8,700

Since both accounts are asset accounts, only the assets will be affected. Cash balance will decrease by $8,700 while equipment will increase by the same amount:

Assets                                                = liabilities + equity

cash         equipment

-8,700      8,700

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