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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
Journal entry: Debit to Office Equipment, Credit to Cash, and Credit to Accounts Payable Jan 4 Office Equipment
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.
3. Transaction: Buying supplies...
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