Per company policy, tools with a purchase price greater than $1,000 are capitalized. What's the correct entry to record a tool purchase of$500?
Question
Solution 1
To record a tool purchase of 1,000, the correct accounting entry would be to record it as an expense. Here is how you would typically make the journal entry:
Journal Entry
- Debit: Tools Expense (or Supplies Expense) $500
- Credit: C Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI
Similar Questions
A company receives $10,000 in cash for services yet to be performed. Using the accrual method, what's the correct entry to record the transaction?
The journal entry to record the purchase of supplies on account includes a debit to:
A company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What's the correct entry to record the transaction?
The journal entry to record the purchase of merchandise on account for $3,950 with freight of $245 prepaid by their supplier and added to the invoice is:
Single choice10)What is the fair price of a lottery ticket that pays off $1,000 with a probability of 10% or zero with a probability of 90%?$100$900$500
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.