Question

What is the journal entry of purchased office equipment on account

Answer 1

When you register a fixed asset, the purchase amount is debited from the Fixed Assets account and credited to the Cash or Loan account. Later on, you lower the Fixed Assets value to represent the asset’s depreciation over time.

When you make an account purchase of materials, you must create a journal entry with one debit and one credit. The debit is made to the supply expenditure account, which is a temporary account that is intended to track expenditures that will be shown on the income statement.