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A company purchased equipment for $900 cash. What accounts are debited and credited to record this transaction?

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A company purchased equipment for $900 cash. What accounts are debited and credited to record this transaction?

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Katherine April 15, 2023 в 05:18

The accounts debited would be the "Equipment" account for $900 since the company acquired new equipment, and the "Cash" account for $900 since the company paid for it in cash. The accounts credited would be none since there is no other account or liability involved in this transaction. This is a simple cash purchase of equipment that results in an increase in the asset account for equipment and a decrease in the asset account for cash.

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