Prepare a journal entry for the purchase of office supplies on October 14 for 9,000, paying $1,800 cash and the remainder on account????????? if anyone knows how to do this can you help me out please!!!! (this is accounting - journal entry for asset purchase)
office supplies 9000
cash 1800
accounts payable 7200
office supplies 9000
cash 1800
accounts payable 7200
To prepare a journal entry for the purchase of office supplies on October 14, you need to follow a few steps. Let's break it down:
1. Identify the accounts involved:
- Office Supplies (asset account)
- Cash (asset account)
- Accounts Payable (liability account)
2. Determine the amounts:
- The total purchase amount is $9,000.
- $1,800 was paid in cash, and the remainder ($9,000 - $1,800 = $7,200) will be paid on account.
3. Prepare the journal entry:
- Debit Office Supplies for $9,000 to increase the asset account.
- Debit Accounts Payable for $7,200 to increase the liability account.
- Credit Cash for $1,800 to decrease the cash asset account.
The completed journal entry on October 14 would look like this:
Date Account Debit Credit
-----------------------------------------------
Oct 14 Office Supplies $9,000
Accounts Payable $7,200
Cash $1,800
Remember, journal entries should always be balanced, with debits equaling credits. In this case, the total debits ($9,000 + $7,200) equal the total credits ($1,800 + $7,200).