Recording Transactions Indicate the accounts to be debited and credited when rec

Question

Recording Transactions

Indicate the accounts to be debited and credited when recording the following unrelated transactions of Burns Office Machines Company by writing the identifying letters in the answer column.  There may be more than one letter for a debit or credit.  The first answer is given as an example.    

Debit     Credit    

E              C             Bought equipment for cash, $3,800.

___        ___        Sold equipment for $300 cash--- original cost, $1,800.00; accumulated depreciation,                                         $1700 (up to date).

___        ___        Traded in old equipment for similar new equipment priced at $6,000, receiving a trade-                                 in allowance of $500.00 and paying the difference in cash --- cost of old equipment,                                        $3600; accumulated depreciation, $3,400 (up to date.) Use the income tax method.

___        ___        Paid $50 for lubricating the equipment bought six months ago.

A - Accounts Payable

B- Accumulated Depreciation, Equipment

C- Cash  

D- Depreciation Expense    

E

Explanation / Answer

Sold equipment for $300 cash=C Debit B debit E Credit G Credit

Traded in old equipment for similar new equipment priced at $6,000 E Debit B debit C Credit E credit

Paid $50 for lubricating the equipment bought six months ago.F debit C credit

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