28.03.2023 - 09:41

The following transactions occur for the Panther Detective Agency during the month of July. a. Purchase a truck and sign a note payable, $13,200. b. Purchase office supplies for cash, $420 c. Pay $62

Question:

The following transactions occur for the Panther Detective Agency during the month of July.

a. Purchase a truck and sign a note payable, $13,200.

b. Purchase office supplies for cash, $420

c. Pay $620 in rent for the current month.

Record the transactions. The company uses the following accounts: Cash, Supplies, Equipment (for the truck), Notes Payable, and Rent Expense.

Transaction General Journal Debit Credit
a.
Answers (1)
  • Katie
    April 13, 2023 в 14:44
    a. General Journal: Debit: Equipment (Truck) - $13,200 Credit: Notes Payable - $13,200 Explanation: The Panther Detective Agency purchased a truck and signed a note payable for $13,200. This transaction increases the value of the equipment (truck) account by $13,200 while creating a debt (Notes Payable) of the same amount. b. General Journal: Debit: Supplies - $420 Credit: Cash - $420 Explanation: The Panther Detective Agency purchased office supplies for cash worth $420. This transaction increases the value of the supplies account by $420 while decreasing the cash account by the same amount. c. General Journal: Debit: Rent Expense - $620 Credit: Cash - $620 Explanation: The Panther Detective Agency paid $620 rent for the current month. This transaction increases the value of the Rent Expense account by $620 while decreasing the value of the Cash account by the same amount.
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