On June 1, 2015 Ted Leo 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 Ted Leo is using both cash and a note to finance the purchase of the copier machine, a compound entry should be made to reflect both the cash and the note payable accounts affected by the transaction.

On June 1, 2015 Ted Leo Buys a Copier Machine