Question

Prepare a journal entry for the purchase of a truck on April 4 for $72,240, paying $5,900 cash and the remainder on account. Refer to the Chart of Accounts for exact wording of account titles.

JOURNAL
DATE DESCRIPTION POST. REF. DEBIT CREDIT
1
2
3

Answer 1

Dr Truck $72,240

Cr Cash $5,900

Cr Accounts Payable $66,340

Step-by-step explanation:

Preparation of the journal entry for the purchase of a truck on April 4

April 4

Dr Truck $72,240

Cr Cash $5,900

Cr Accounts Payable $66,340

($72,240 - $5,900)

(To record purchase of truck)