Question

On a summary of transactions, May 1 my columns are cash, accounts receivable, land, accounts payable, capital stock, and retained earnings. On May 31 I placed an order for new equipment expected to cost $120,000. Do I add a equipment column, or use the account receivable column?

Answer 1

If you're expecting to pay money it should be in accounts payable and in new equipment to balance the transaction. So yes, add an equipment column.