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28 March, 19:17

The following transactions occur for the Panther Detective Agency during the month of July:

a. Purchase a truck and sign a note payable, $14,300.

b. Purchase office supplies for cash, $530.

c. Pay $730 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.)

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Answers (2)
  1. 28 March, 20:57
    0
    1.

    Purchase a truck and sign a note payable

    Debit Credit

    a. Equipment $14,300

    Notes Payable $14,300

    Purchase office supplies for cash

    b.

    Debit Credit

    Supplies $530

    Cash $530

    Pay in rent for the current month

    c. Debit Credit

    Rent Expense $730

    Cash $730

    Explanation:

    1. The transactions to record would be the following:

    Purchase a truck and sign a note payable

    Debit Credit

    a. Equipment $14,300

    Notes Payable $14,300

    Purchase office supplies for cash

    b.

    Debit Credit

    Supplies $530

    Cash $530

    Pay in rent for the current month

    c. Debit Credit

    Rent Expense $730

    Cash $730
  2. 28 March, 21:09
    0
    Panther Detective Agency

    General Journal:

    a: Debit Equipment $14,300

    Credit Notes Payable $14,300

    To record purchase of a truck with a note payable.

    b: Debit Supplies $530

    Credit Cash $530

    To record purchase of office supplies for cash.

    c: Debit Rent Expense $730

    Credit Cash $730

    To record payment of rent for the current month.

    Explanation:

    The general journal is an accounting tool used to record transactions on a daily basis. It shows which account is to be debited and which is to be credited.

    The account that receives value is debited and the account that gives value is credited. It is from the general journal that transactions are posted to the general ledger.
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