Financial Act Demonsration Problem #1

Equipment will have future economic benefit so it is

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Unformatted text preview: conomic benefit, so it is an asset. Paid part in cash, so asset is decreasing. Also has incurred a debt which is due to be paid next month. Rules: Increases to assets are debited, decreases to assets are credited, increases to liabilities are credited. Journal entry: Debit to Office Equipment, Credit to Cash, and Credit to Accounts Payable Jan 4 Office Equipment Cash Accounts Payable 4. Dr. 1,500 Cr. 750 750 Post to the general ledger: Office Equip. 1/41500 Cash Accounts Payable 1/1 10,000 1/2 800 1/4 750 1/4 750 January 6: Purchased printing and office supplies from Office Depot, on credit, $150. 1. 2. 3. Transaction: Buying supplies...
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This note was uploaded on 01/22/2014 for the course ACG 2021 taught by Professor Linkovich during the Spring '08 term at University of South Florida - Tampa.

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