1. Suppose a hotel purchases P50,000 computer to be used in the operations on credit from a supplier. The journal entry should be: A. Account to be debited: Computer; Account to be credited: Accounts Payable B. Account to be debited: Accounts Receivable; Account to be credited: Computer C. Account to be debited: Purchases; Account to be credited: Accounts Payable D. Account to be debited: Purchases; Account to be credited: Accounts Receivable
1. Suppose a hotel purchases P50,000 computer to be used in the operations on credit from a supplier. The journal entry should be: A. Account to be debited: Computer; Account to be credited: Accounts Payable B. Account to be debited: Accounts Receivable; Account to be credited: Computer C. Account to be debited: Purchases; Account to be credited: Accounts Payable D. Account to be debited: Purchases; Account to be credited: Accounts Receivable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. Suppose a hotel purchases P50,000 computer to be used in the operations on credit from a supplier. The journal entry should be:
A. Account to be debited: Computer; Account to be credited: Accounts Payable
B. Account to be debited: Accounts Receivable ; Account to be credited: Computer
C. Account to be debited: Purchases; Account to be credited: Accounts Payable
D. Account to be debited: Purchases; Account to be credited: Accounts Receivable
2. Suppose Mr. Chan lends P500,000 cash to the entity. At the same time, the entity uses part of the money to repay the amount owed to a creditor and holds the remaining amount of P400,000 in the bank account.
the journal entry should be:
A. Account(s) to be debited: Cash, P500,000, Bank, P400,000; Account(s) to be credited: Accounts payable, P900,000
B. Account(s) to be debited: Cash, P100,000, Bank, P400,000; Account(s) to be credited: Loan from Mr. Chan, P500,000
C. Account(s) to be debited: Cash, P400,000, Accounts payable, P100,000; Account(s) to be credited: Bank, P500,000
D. Account(s) to be debited: Accounts payable, P100,000, Cash, P400,000; Account(s) to be credited: Loan from Mr. Chan, P500,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education