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What is the right effect on the accounting equation Asset equals Liab puls Equity should be for supplies purchased on account?
first, i just want to say out my answer, if not correct, please correct me please,guys.
i think it is Asset going up and Liab going up too, because the supplies are asset to me, and at the same time what i should have paid increases my liability.
the problem is, does anyone have the textbook (intermediate accounting1, 2ed by baruch englard). It says is differently.
in the textbook, on page 5, example 10, it says, asset going down and liab going down.
i wonder why is that?
What else can I help you with?
How does the purchase of supplies on account affect the accounting equation?
When supplies are purchased on account, it increases assets and liabilities in the accounting equation. Specifically, supplies (an asset) increase, while accounts payable (a liability) also increase by the same amount. This keeps the accounting equation balanced, as the increase in assets is offset by an equal increase in liabilities.
When supplies are bought on account the account debited is?
When supplies are bought on account, the account debited is the Supplies or Inventory account, reflecting an increase in assets. The corresponding credit entry is made to Accounts Payable, indicating a liability to pay the supplier in the future. This transaction follows the double-entry accounting principle, ensuring that the accounting equation remains balanced.
Is purchasing office supplies a debit or credit in accounting?
In accounting, purchasing office supplies is recorded as a debit to the Office Supplies expense account, reflecting an increase in expenses. Simultaneously, it results in a credit to the Cash or Accounts Payable account, indicating a decrease in assets or an increase in liabilities, respectively. This transaction adheres to the double-entry accounting system, ensuring that the accounting equation remains balanced.
Is supplies debit or credit?
In accounting, supplies are typically considered an asset and are recorded as a debit when purchased. When supplies are used or expensed, that expense is recorded as a credit. Thus, the initial purchase of supplies increases the asset account, while usage decreases it through an expense account entry.
What is the basic summary device of accounting?
account or accounting equation
Does supplies expense have a debit or credit balance?
Supplies expense typically has a debit balance. In accounting, expenses are recorded as debits, which increase the total expenses on the income statement. When supplies are purchased, the supplies expense account is debited to reflect the cost incurred. Conversely, when supplies are used, the expense account is still debited, as it represents a cost to the business.
In the buyers records the purchase of merchandise on account would it increase or decrease assets expenses liabilities?
Anything bought on account will have an impact on two sides of the accounting equation. Since we "purchased" the merchandise we are receiving, therefore we will Increase our assets (merchandise), since we purchased this item on "account" we will also increase our liabilities (account payable).
What will be the journal entry for supplies purchased with a check?
Debit supplies accountCredit bank account
What account is affected in an account journal when you return office supplies that was bought on account?
Say I purchsed $500 in Office Supplies on account, I return the office supplies, since I purchased them on account, the company I purchased them from will extend me a credit to my account decreasing the balance I owe them by the said amount. My books will record....Account Payable (debit)Office Supplies (credit)I debit my Account Payable to show that I no longer owe that amount and I credit my Office Supplies to show that I no longer have that amount of supplies on hand.
What purchase of supplies on account is recorded in the?
The amount which is paid on account(credit) should be recorded in a liability account i believe while record the purchased supplies in the asset.
In which journal is the return of supplies purchased on account recorded?
General Journal
How do withdrawals affect the accounting equation?
Debit Withdraw account and Credit Cash
