Please record the following items in Journal Entry format. Clearly indicate the: (a) account name,...
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Accounting
Please record the following items in Journal Entry format. Clearly indicate the: (a) account name, (b) whether it is a (debit) or (credit), and (c) the amount. See my example below:
Example: The firm purchased equipment for $1,000. Clearly indicate the: (a) account name, (b) whether it is a (debit) or (credit), and (c) the amount.
Correct way to answer:
Equipment (debit) $1,000
Cash (Credit) $1,000
ABC Company purchased 150 computers from its suppliers on credit at a cost of $1,000 each. The computers were purchased to be held for sale to customers by the end of the month. ABC Company had sold all 150 computers for $1,500 each. The store received payment for these computers, but waited until the end of the month to pay the supplier. Please record:
a) the purchase of the computers on credit.
b) the sale of the computers on credit.
c) the receipt of cash for the sale of the computers in full from the customers.
d) the payment made to the suppliers for the computers originally purchased on credit.
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