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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. 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.
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. |