Question

Oliver company has acquired a used piece of equipment for and paid transportation costs of . the journal entry would be (assuming cash was paid):

Answer 1

In accounting practice within a Business context, when a company acquires equipment and pays for transportation, the journal entry consists of debiting the Equipment account and crediting the Cash account for the total cash outflow.

Step-by-step explanation:

When Oliver Company acquires a used piece of equipment and pays for transportation costs, the corresponding journal entry assuming cash was paid would include debiting the Equipment account for the cost of the equipment plus the transportation costs and crediting the Cash account for the total amount paid.

This records the increase in assets (equipment) and the decrease in assets (cash).

The journal entry would look something like this:

• Debit: Equipment (for the total cost of equipment plus transportation costs)
• Credit: Cash (for the total amount paid)

This entry reflects the acquisition of an asset and the expenditure of cash, thereby maintaining the balance in the company's accounting equation.

Answer 2

The journal entry for acquiring a used piece of equipment and paying transportation costs includes debiting Equipment and Transportation Expenses and crediting Cash.

Step-by-step explanation:

The journal entry for Oliver Company acquiring a used piece of equipment and paying transportation costs would be:

1. Debit Equipment (the cost of the equipment)
2. Debit Transportation Expenses (the cost of transportation)
3. Credit Cash (the amount paid)

This entry reflects an increase in the company's assets (Equipment), an increase in expenses (Transportation Expenses), and a decrease in cash. This helps accurately record the acquisition of the equipment and the associated costs.