assets and liabilities increase
Example 1: A company purchased $12,000 equipment and paid in cash.Debit Equipment $12,000 (Increase in asset)Credit Bank $12,000 (Decrease in asset)Example 2: A company purchased $12,000 equipment in credit.Debit Equipment $12,000 (Increase in asset)Credit Supplier $12,000 (Increase in Liability)Example 3: A company purchased $12,000 equipment and paid in $10,000 Cast and $2,000 on credit.Debit Equipment $ 12,000 (Increase in asset)Credit Bank $ 10,000 (Decrease in asset)Credit Supplier $ 2,000 (Increase in Liability)
-Expenditures
Shop fitting equipment can be purchased from a variety of stores. The equipment can be purchased from PRLog, Aliexpress, HKTDC, and Shop Equipment Limited.
Multi track recorders can be purchased online on sites like Amazon, and can also be purchased from dedicated Audi equipment stores. Software multitrack recorders can be purchased to run on a laptop for increased portability.
Debit Equipment 9000 Credit Cash 1500 Credit Account payable 7500
If the equipment is purchased on credit (on account) then the net assets will stay the same as the assets will increase by the same amount as the liabilities
Equipment is not actually bought using common stock rather it is purchased from cash by issuing common stock so journal entry is : [Debit] Equipment [Credit] Cash / bank
A debit to equipment and a credit to liability
Debit Cash 28890 Debit Equipment 42390 Credit Capital 71280
Debit to Equipment and a credit to Accounts Payable
[Debit] Office Equipment 3000 [Credit] Cash 1500 [Credit] Accounts payable 1500 When remaining amount paid after 30 days [Debit] Accounts Payable 1500 [Credit] Cash 1500