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The company pays cash for a piece of equipment. the list price was $9,100, but after negotiation, the final purchase price was $8,700.

User Kratenko
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Answer:

this question is part of a longer question where you had to state how this transaction affects the accounting equation of the company:

the journal entry would be

Dr Equipment 8,700

Cr Cash 8,700

Since both accounts are asset accounts, only the assets will be affected. Cash balance will decrease by $8,700 while equipment will increase by the same amount:

Assets = liabilities + equity

cash equipment

-8,700 8,700

User Jua
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