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29 January, 07:54

The journal entry to record the purchase of equipment for a $220 cash down payment and a balance of $640 due in 30 days would include Multiple Choice a debit to Equipment for $220 and a credit to Cash for $220. a debit to Equipment for $860, a credit to Cash for $220, and a credit to Accounts Payable for $640. debit to Equipment for $860 and a credit to Cash for $860. a debit to Equipment for $220 and a credit to Accounts Payable for $640.

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  1. 29 January, 08:21
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    a debit to Equipment for $860, a credit to Cash for $220, and a credit to Accounts Payable for $640.

    Explanation:

    The complete journal entry to record the purchase of the equipment would be:

    Dr Equipment 840

    Cr Cash 200

    Cr Accounts payable 640

    Since the balance is due in 30 days, it will be recorded as accounts payable.

    The cost of the equipment = $200 cash down payment + $640 debt = $840
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