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Martin's Mail Service purchased equipment for $2,500. Martin Paid $500 in cash and signed a
note for the balance. Martin debited (increased) the Equipment account, credited (decreased) the
Cash account, and:
A. nothing further must be done
B. debited (increased) the Martin, Capital account for $2,000
C. credited (reduced) some other asset account for $2,000
D. credited (increased) a liability account for $2,000
Solution
entry required is:
hence the answer is DEquipment$2500To cash$500To notes payable$2000

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Martins Mail Service purchased equipment for $2,500. Martin Paid $.pdf

  • 1. Martin's Mail Service purchased equipment for $2,500. Martin Paid $500 in cash and signed a note for the balance. Martin debited (increased) the Equipment account, credited (decreased) the Cash account, and: A. nothing further must be done B. debited (increased) the Martin, Capital account for $2,000 C. credited (reduced) some other asset account for $2,000 D. credited (increased) a liability account for $2,000 Solution entry required is: hence the answer is DEquipment$2500To cash$500To notes payable$2000