Thursday, November 19, 2009

Purchase Equipment Journal Entry

Company's will often purchase equipment with a cash down payment and the rest will be financed by credit. It will be important to update the general ledger in order to know when to make payments and how much the equipment is worth.

Accounting Journal Entry Example:

Type of Journal Entry
Account titles
Debit
Credit
Purchase of Long Term Asset with mix of cash for down payment and credit
Equipment
Cash
Accounts Payable
XXX

XXX
XXX

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