On June 1 2016 Ben Casey 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 Ben Casey is using both cash and a note to finance the purchase of the copier machine, it is appropriate to make a compound entry to reflect both aspects of the transaction. A compound entry combines multiple transactions into one journal entry.

On June 1 2016 Ben Casey Buys a Copier Machine