Question

When a company purchases a computer on credit for $2,500, which of the following journal entries is made?

A. Debit assets and debit liabilities
B. Debit assets and credit liabilities
C. Credit assets and debit liabilities
D. Credit assets and credit owner's equity

Answer 1

The correct journal entry for a company purchasing a computer on credit is to debit assets and credit liabilities, which reflects the acquisition of a new asset and the creation of a new liability.

Step-by-step explanation:

When a company purchases a computer on credit for $2,500, the correct journal entry that is made is: Debit assets and credit liabilities. This reflects an increase in the company's assets because it has acquired a new computer, and an increase in its liabilities because it now owes money to the creditor from whom it purchased the computer on credit. Therefore, the correct answer is B. Debit assets and credit liabilities.