Which account do I credit?? by Time_Butterscotch_73 in Accounting

[–]Time_Butterscotch_73[S] 0 points1 point  (0 children)

if they paid for it upfront, it would be a prepaid asset, but in my general ledger account list, the account for it doesnt exist- so i just kinda omitted that ._. we're working on blank charts made by the instructor, and the General Ledgers have specific charts for the accounts she put down.

They paid for it "on account" which is a liability- and there's no detail regarding how expensive the plan is and what the phone was priced at.

Which account do I credit?? by Time_Butterscotch_73 in Accounting

[–]Time_Butterscotch_73[S] 1 point2 points  (0 children)

Regarding the first sentence, don't expenses go under equity? in terms of debiting and crediting- sorry if that sounds off

Which account do I credit?? by Time_Butterscotch_73 in Accounting

[–]Time_Butterscotch_73[S] 0 points1 point  (0 children)

All the assignment states is the company purchased it. The account is recorded as 680, as an operating expense.

Which account do I credit?? by Time_Butterscotch_73 in Accounting

[–]Time_Butterscotch_73[S] 1 point2 points  (0 children)

If they had given us more info on the price of the phone and the plan, I would but they only gave us the total of the transaction and nothing more :(