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The purchase of equipment on credit is recorded by?
Debit to Equipment and a credit to Accounts Payable
How is the purchase journal posted to the general ledger?
The purchase journal is posted to the general ledger by transferring the total amounts recorded in the purchase journal to the corresponding accounts in the general ledger, typically the accounts payable and inventory accounts. Each entry is recorded as a debit to the inventory account and a credit to the accounts payable account. This posting process usually occurs at the end of an accounting period, ensuring that all purchases are accurately reflected in the financial statements. Posting can be done manually or through accounting software, which automates the process for efficiency.
How are purchase discounts and purchase returns recorded by a company using the periodic inventory system?
They are recorded as a direct reduction to the Purchases account.
What you mean by account?
Account means a single entry in double entry system such as i purchase some thing for business i recorded for example Land debit and money credit these debit and credit are called accounts in accounting
Which of the following types of accounts are decreases recorded by credits?
revenues, liabilities
The purchase of equipment on credit is recorded by?
Debit to Equipment and a credit to Accounts Payable
What is the purchase of equipment on credit recorded by?
A debit to equipment and a credit to liability
How is the purchase journal posted to the general ledger?
The purchase journal is posted to the general ledger by transferring the total amounts recorded in the purchase journal to the corresponding accounts in the general ledger, typically the accounts payable and inventory accounts. Each entry is recorded as a debit to the inventory account and a credit to the accounts payable account. This posting process usually occurs at the end of an accounting period, ensuring that all purchases are accurately reflected in the financial statements. Posting can be done manually or through accounting software, which automates the process for efficiency.
Is a decrease in accounts payable recorded as a debit or credit on the financial statements?
A decrease in accounts payable is recorded as a debit on the financial statements.
How are purchase discounts and purchase returns recorded by a company using the periodic inventory system?
They are recorded as a direct reduction to the Purchases account.
What you mean by account?
Account means a single entry in double entry system such as i purchase some thing for business i recorded for example Land debit and money credit these debit and credit are called accounts in accounting
Which of the following types of accounts are decreases recorded by credits?
revenues, liabilities
Assets purchased for resale are recorded in which of the following accounts?
Merchandise Inventory
How are decreases to liability accounts recorded on the credit side?
Decreases to liability accounts are recorded on the credit side by crediting the account to reduce the balance. This helps to accurately reflect the decrease in the amount owed by the company.
Are revenue and expense accounts real accounts?
No real accounts are for business possessions like assets and stock revenue and expense items are recorded in the nominal also named the general ledger. Personal accounts are for debtors and creditors accounts.
Expenses that have been incurred but not recorded in the accounts?
Expenses incurred but not yet paid or recorded are called accrued expenses.
Accounts receivable is under what statement?
Accounts receivable is a benefit receivable in future time that's why it is recorded in balance sheet of company
