Sternberg Company purchases equipment for $1,200 and supplies for $400 from Tran Co. for $1,600 cash. The entry for this transaction will include a

Question

Quizplus · Accepted Answer

The transaction involves the purchase of equipment and supplies for cash by Sternberg Company from Tran Co. Therefore, there will be a debit to Equipment for $1,200 and a debit to Supplies for $400 for Sternberg Company to record the acquisition of these assets. Since the transaction was paid in cash, there will be a credit to Cash for $1,600. Therefore, choice D is the only option that correctly reflects the accounting treatment of this transaction.

Sternberg Company Purchases Equipment for $1,200 and Supplies for $400