Question

On February 3, 2015, Fusilli Stores purchased a computer that cost $5,000. The firm made a down payment of $500 and signed a note payable for the balance. Show the general journal entry to record this transaction.

a) Debit Computer $5,000, Credit Cash $500, Credit Notes Payable $4,500
b) Debit Computer $5,000, Credit Cash $500, Credit Accounts Payable $4,500
c) Debit Computer $4,500, Credit Cash $500, Credit Notes Payable $5,000
d) Debit Computer $4,500, Credit Cash $500, Credit Accounts Payable $5,000

Answer 1

The correct journal entry for Fusilli Stores purchasing a computer with a down payment and signing a note payable for the balance is a debit to Computer for $5,000, a credit to Cash for $500, and a credit to Notes Payable for $4,500.

Step-by-step explanation:

The correct general journal entry to record the transaction of Fusilli Stores purchasing a computer for $5,000 with a $500 down payment and a note payable for the balance on February 3, 2015, would be:

• Debit Computer $5,000
• Credit Cash $500
• Credit Notes Payable $4,500

This journal entry reflects the acquisition of the computer asset, the cash payment made, and the creation of a note payable for the remaining amount due.