Buying equipment with a down payment and a note payable

Transaction

A company buys a machine for $24,000.00. On delivery it pays $6,000.00 by check as a down payment and signs a 6-month, 6% note payable to the supplier for the balance.

Assumptions: No sales tax applies to this purchase. Interest on the note is recorded as it accrues, not at purchase.

Accounts

Tap an account, then choose Debit or Credit and type the amount. × removes a line.

Debit

No lines yet. Choose an account above.

Credit

No lines yet. Choose an account above.

Debits $0.00Credits $0.00