J1 Date Account Titles and Explanation Ref. Debit Credit Mar. 1 Cash 50,000 Common Stock 50,000 (Investment of cash in business) 3 Land 10,000 Building 22,000 Equipment 6,000 Cash 38,000 (Purchased Michelle Wie’s Golf Land) 5 Advertising Expense 1,600 Cash 1,600 (Paid for advertising) 6 Prepaid Insurance 1,480 Cash 1,480 (Paid for one-year ...
To illustrate, assume that Clark Company purchased new equipment to replace equipment that it has used for five years. The company paid a net purchase price of $150,000, brokerage fees of $5,000, legal fees of $2,000, and freight and insurance in transit of $3,000. In the above example, computer equipment is an asset account. To increase an asset account, you debit it. Hence, we debited Computer Equipment. Cash is also an asset account. However, there is a decrease in cash because we paid for the computer equipment. And so, we credited Cash. Compound Journal EntriesSteely Company Adjusted Trial Balance For the Year ended December 31, 2008 Cash 6,130 Accounts Receivable 2,300 Prepaid Expenses 750 Equipment 13,400 Accumulated Depreciation 1,200 Accounts Payable 1,700 Notes Payable 5,000 Bob Steely, Capital 12,000 Bob Steely, Withdrawals 870 Fees Earned 6,600 Wages Expense 1,450 Rent Expense 900 Utilities ... Transaction 2: On January 5, 2019, purchases equipment on account for $3,500, payment due within the month. In the journal entry, Equipment has a debit of $3,500. This is posted to the Equipment T-account on the debit side. Accounts Payable has a credit balance of $3,500. This is posted to the Accounts Payable T-account on the credit side. Nov 18, 2011 · Debit the Equipment In-Kind Expense account $5,000; Credit the Donations In-Kind Revenue account $5,000; Capital Equipment Donation: Now, let say that the donation was for one (1) generator valued at $5,000. Because your organization capitalizes any equipment with a value of $5,000 or more, this is a donation of a fixed asset.
barones repair shop was started on may 1 by nancy barone. a summary of the transactions is presented below. 1. invested $10,000 cash to start the repair shop. 2.purchased equipment for $5,000 cash 3. paid $400 cash for may office rent 4. paid $500 cash for supplie 5. incurred $250 of advertising cost in the beacon news on account. 6.
Jan 08, 2011 · During Sept-ember the following transactions occurred: Paid $ 2,900 cash on accounts payable. Collected $ 1,300 of accounts receivable. Purchased additional office equipment for $ 2,100 paying $ 800 in - cash and the balance on account. Earned revenue of $ 6,300 of which $ 2,500 is paid in cash & the balance is due in October. The total purchase was $5,000 with terms 3/10, n/30. Medici paid for the purchase on August 20. Record the necessary journal entries for Medici Music. ... We do not use the Purchases account because we want to preserve the balance in that account, in case we need to match it up with purchase documents.Accounting for property, plant, and equipment . The accounting for property, plant, and equipment is primarily concerned with determining the cost used up in any given period (depreciation expense) and the dollar amount to report as an asset on the balance sheet at the end of the period.