A company purchased equipment costing $15,000. They paid $1,000 right away and agreed to pay the balance in 30 days, the journal entry to record the purchase of equipment would include:

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The total cost of the equipment is $15,000. The company paid $1,000 in cash, leaving a balance of $14,000, which they agreed to pay in 30 days. Therefore, the journal entry should include a debit to Equipment for $15,000, a credit to Cash for the amount paid upfront ($1,000), and a credit to Accounts Payable for the balance due ($14,000).

A Company Purchased Equipment Costing $15,000