Colors Company purchased a piece of machinery for $4,000. The company paid $1,500 at the time...
Colors Company purchased a piece of machinery for $4,000. The company paid $1,500 at the time of the purchase, and agreed to pay the remaining $2,500 one month later. The entry to record this transaction would include which of the following elements?
Multiple Choice
-
The Accounts Payable account displayed on the top line
-
The Machinery account displayed on the line immediately above the description
-
The Cash account indented about one-half inch from the left margin
-
The Accounts Payable account indented about one inch from the left margin
Homework Answers
The entry would be
| DEBIT | CREDIT | |
| Machinery | 4,000 | |
| Cash | 1,500 | |
| Accounts Payable | 2,500 |
.
Option C
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