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Homework answers / question archive / 1)Sternberg Company purchases equipment for $1,200 and supplies for $400 from Tran Co

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

Accounting

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.

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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.