Financial Accounting Fundamentals | Online Course Support

The Garden Spot purchased office equipment for $9,000 and paid the full amount in cash. What is the journal entry for the purchase?

 

Cash (A) (dec) $9,000

…PP&E (A) (inc) $9,000

 

PP&E (A) (dec) $9,000

…Cash (A) (inc) $9,000

 

PP&E (A) (inc) $9,000

…Accrued Expenses (L) (inc) $9,000

 

     …Cash (A) (dec) $9,000

 
 

Correct answer. The increase in PP&E, an Asset account, should be debited on the left side with the appropriate dollar amount. The decrease in Cash, an Asset account, should be credited on the right side with the appropriate dollar amount.

Similar Posts