Question

Equipment with an estimated market value of $27,823 is offered for sale at $48,256. The equipment is acquired for $14,743 in cash and a note payable of $23,598 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is

Answer 1

credit bank $14743 credit payables 33513 . ,,debit equipment $48256

Explanation:

The buyer has acquired the equipment for a cash purchase of $14 743 therefore they have to credit their bank balance with $14743 and debit the Non-current asset with $14743 and $33513. They would also have to credit creditors(trade payables) with $33513 because the sale price was $48 256 and that is the purchase price for the buyer. The cost price of the equipment is $48 256 for the buyer