How to journal a transaction like this. I purchase a machine that cost me $10000, but the seller will give me the machine on the next accounting period. as it is a machine, that can bring you future economic benefits from the next few accounting period, so it is not an expense, it is an asset. Also, it is not an revenue either. So what should I record? So from the seller point of view, it would be: Cash 10000 Unearned revenue 10000 But in buyer view: How should I record this transaction? Machine receivable 10000? (This account should not be existed, it should be wrong.) Cash 10000

How to journal a transaction like this. I purchase a machine that cost me $10000, but the seller will give me the machine on the next accounting period. as it is a machine, that can bring you future economic benefits from the next few accounting period, so it is not an expense, it is an asset. Also, it is not an revenue either. So what should I record? So from the seller point of view, it would be: Cash 10000 Unearned revenue 10000 But in buyer view: How should I record this transaction? Machine receivable 10000? (This account should not be existed, it should be wrong.) Cash 10000

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Description: How to journal a transaction like this.I purchase a machine that cost me $10000, but the seller will give me the machine on the next accounting period.as it is a machine, that can bring you future economic benefits from the next few accounting period

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter2: The Accounting Information System

Section: Chapter Questions

Problem 7MCQ: Taylor Company recently purchased a piece of equipment for $2,000 which will be paid within 30 days...

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