Using the Information Shown, Write the Journal Entry for the Purchase

question 84

Essay

Using the information shown, write the journal entry for the purchase of the Office Furniture assuming it was purchased on credit by signing a note and the journal entry for the Office Equipment purchase assuming that a check was written for it.

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Definitions:

Goodwill

The value of all favorable attributes that relate to a company that is not attributable to any other specific asset.

Book Value

The net value of a company's assets minus its liabilities and intangible assets, often used to evaluate a company's worth.

Fully Depreciated

Refers to an asset that has reached the end of its useful life for accounting purposes, having no remaining book value.

Gain

A financial increase in the value of an asset or a rise in the value of an investment, excluding the amounts invested or cost incurred to achieve the gain.