Purchased equipment from Company, $9,000. Paid $1,500 down and the balance was placed on account. Payments will be $375.00 per month for twenty months. The first payment is due 4/1. How would I enter this in a journal entry?

Imran Ahmad

• Aug 24th, 2017

Equipement A/C Dr 9000
To cash A/C 1500
To S.Creditor A/C 7500
(Being equipement purchased and paid rs 1500 and rest in his A/C.)

Yogeesha

• Jul 21st, 2017

When Purchase the Equipment.
Asset Account Dr 9000
To Bank A/C 1500
To Supplier A/c 7500

When making balance payment
Supplier A/c Dr 375
To Bank Account 375

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