1)Sternberg Company purchases equipment for $1,200 and supplies for $400 from Tran Co. for $1,600 cash. The entry for

Question

1)Sternberg Company purchases equipment for $1,200 and supplies for $400 from Tran Co. for $1,600 cash. The entry for this transaction will include a O credit to Cash for Tran. O debit to Equipment $1,200 and a debit to Supplies Expense $400 for Tran. O credit to Accounts Payable for Sternberg. O debit to Equipment $1,200 and a debit to Supplies $400 for Sternberg. 2)On October 3, Josh Antonio, a carpenter, received a cash payment for services previously billed to a client. Josh paid his telephone bill, and he also bought supplies on credit. For the three transactions, at least one of the entries will include a O credit to Accounts Payable. O debit to Accounts Receivable. O credit to Retained Earnings. O credit to Notes Payable.

Help In Homework · Accepted Answer

1) debit to Equipment $ 1,200 and a debit to supplies $400 for Sternberg credit to Cash for Tran. Tran Co. is receiving cash.So, Cash will be debited, not credited in the book of Tran Co., . debit to Equipment $ 1,200 and a debit to Supplies Expense $ 400 for Tran. Tran Co. is selling the equipment and supplies. So, these will credited, not debited in the books of Tran Co. credit to accounts payable for Sternberg Sternberg Company is purchasing equipment and supplies for cash. So, cash will be credited in the books of Strenberg Co. debit to Equipment $ 1,200 and a debit to Supplies $ 400 for Staernberg. Sternberg Company will debit Equipment and Supples and credit cash in its books of accounts. 2) Solution is Option 1: Credit to Accounts Payable The three entries are:- Books of Josh Antonio Journal Date Particulars LF Debit Credit 1 Cash Account Dr To Accounts Receivable (Being cash received from customer for services rendered previously - invoice bill dated...) 2 Telephone expenses Dr To Telephone bill payable (Being telephone charges accounted) 3 Supplies (Purchases) Account Dr To Accounts Payable (Being supplies purchased on account) Therefore, there is a credit to accounts payable in the last transaction.

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1)Sternberg Company purchases equipment for $1,200 and supplies for $400 from Tran Co

Expert Solution

Archived Solution

Solution is Option 1: Credit to Accounts Payable

The three entries are:-

Books of Josh Antonio
Journal
Date	Particulars	LF	Debit	Credit
1	Cash Account	Dr
	To	Accounts Receivable
	(Being cash received from customer for
	services rendered previously - invoice
	bill dated...)

2	Telephone expenses	Dr
	To	Telephone bill payable
	(Being telephone charges accounted)

3	Supplies (Purchases) Account	Dr
	To	Accounts Payable
	(Being supplies purchased on account)


Therefore, there is a credit to accounts payable in the last transaction.