On June 1, 2014 Quang Le buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he will
A) use two journal entries.
B) make a compound entry.
C) make a simple entry.
D) list the credit entries first, which is proper form for this type of transaction.

Question

Quizplus · Accepted Answer

Since Quang Le is using both cash and a note to finance the purchase of the copier machine, a compound entry should be made. This means that both the cash and note must be recorded in a single journal entry.

On June 1, 2014 Quang Le Buys a Copier Machine