Question

Please record the following transactions for the Panther Detective Agency during the month of July using the provided accounts: Cash, Supplies, Equipment (for the truck), Notes Payable, Accounts Payable, and Rent Expense.

1. Purchased a truck on credit for $14,900.
2. Purchased office supplies for cash, $590.
3. Paid $790 in rent for the current month.
Please make the necessary journal entries for these transactions. If no entry is required for a transaction/event, select 'No Journal Entry Required' in the first account field.

Answer 1

The transactions for the Panther Detective Agency are recorded as journal entries, with a truck purchase on credit, office supplies purchase for cash, and rent payment, affecting Equipment, Notes Payable, Supplies, Cash, and Rent Expense accounts respectively.

Step-by-step explanation:

To record the transactions for the Panther Detective Agency, we must make journal entries for each event using the provided accounts.

1. Equipment (Truck) 14,900
   Notes Payable 14,900
   Step-by-step explanation: Purchased a truck on credit for $14,900. The truck is an asset recorded under Equipment, and since it is bought on credit, Notes Payable is credited.
2. Supplies 590
   Cash 590
   Step-by-step explanation: Bought office supplies for cash, which is an expense that reduces Cash and increases Supplies.
3. Rent Expense 790
   Cash 790
   Step-by-step explanation: Paid rent for the current month, which is an expense that reduces Cash and increases Rent Expense.