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The following transactions occur for the Panther Detective Agency during the month of July:
a. Purchase a truck and sign a note payable, $15,000.
b. Purchase office supplies for cash, $600.
c. Pay $800 in rent for the current month.
Required:
1. Record the transactions. The company uses the following accounts: Cash, Supplies, Equipment (for the truck), Notes Payable, and Rent Expense. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Respuesta :

abiolataiwo2015

Answer:

a.

Dr Equipment $15,000

Cr Notes payable $15,000

b.

Dr Supplies $600

Cr Cash $600

c.

Dr Rent expense $800

Cr Cash $800

Explanation:

Panther Detective Agency Journal entry

a.

Dr Equipment $15,000

Cr Notes payable $15,000

b.

Dr Supplies $600

Cr Cash $600

c.

Dr Rent expense $800

Cr Cash $800

anthougo

Answer:

Panther Detective Agency

Journal Entries:

a) Debit Equipment Account $15,000

Credit Notes Payable $15,000

To record purchase of truck with a note.

b) Debit Supplies Account $600

Credit Cash Account $600

To record purchase of office supplies for cash.

c) Debit Rent Expense $800

Credit Cash Account $800

To record payment of rent for the current month.

Explanation:

a) The purchase of a truck increases the Equipment Account and the Notes Payable Account by $15,000.

b) Payment for office supplies reduces the Cash Account and increases the Supplies Account by $600.

c) The payment for rent for the current month increases the Rent Expense Account and reduces the Cash Account by $800.

d) The use of journal entries is to record business transactions as they occur. Β It makes it easier to know which account will be credited and which to be debited in the Ledger.

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