Scenario Today is 30 June 20XX. You work as an accounting assistant at XYZ Company, a manufacturing
Question:
Scenario
Today is 30 June 20XX.
You work as an accounting assistant at XYZ Company, a manufacturing firm. As part of your role, you are responsible for making general journal and general ledger entries to accurately record the company's financial transactions. Recently, XYZ Company purchased new machinery for its production facility. The machinery cost $50,000 and was paid in cash. The company also incurred an additional $2,000 for transportation and installation costs, which were paid using the company's credit card.
Based on the scenario, what general journal and general ledger entries would you make to record the purchase of the machinery and related expenses?
Use the table below.
General Journal | |||||
---|---|---|---|---|---|
Account title | Debit ($) | Credit ($) | |||
General Ledger | |||||
Account title | Date | Description | Debit | Credit | Balance |
List the process steps you followed to make the entries to record the purchase of the machinery and related expenses. | |||||
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille