Accounts Payable Question: Download Questions PDF
Purchased equipment from ABC company, $9,000. Paid $1,500 down and the balance was placed on account. Payments will be $375.00 per month for twenty months. The first payment is due 4/1.
How would you enter this into a journal entry?
Answers:
Answer #11.Entry
Purchase Account Dr $9000
To Cash/Bank A/c Cr $1500
To Payable A/c Cr $7500
2. Entry
Recurring Entry setup for 20 months every month from 4/1
Payable A/c Dr $375
To Cash/Bank A/c Cr $375
Purchase Account Dr $9000
To Cash/Bank A/c Cr $1500
To Payable A/c Cr $7500
2. Entry
Recurring Entry setup for 20 months every month from 4/1
Payable A/c Dr $375
To Cash/Bank A/c Cr $375
Answer #21.Purchases a/c Dr $ 9000
To ABC Company $9000
2. ABC Company Dr. $1500
To Cash/Bank $1500
Recurring entry setup for 20 months against every month show in reconciliation.
3. ABC Company A/c Dr $ 375
To Cash /Bank $ 375
To ABC Company $9000
2. ABC Company Dr. $1500
To Cash/Bank $1500
Recurring entry setup for 20 months against every month show in reconciliation.
3. ABC Company A/c Dr $ 375
To Cash /Bank $ 375
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