Double-Entry Accounting The Accounting System of Most Businesses,whether Manual or Computer-Based,is Some

question 74

Essay

Double-entry accounting
The accounting system of most businesses,whether manual or computer-based,is some form of a double-entry system of accounting.
(A. )What is meant by the term "double-entry accounting"?
(B. )Explain how the double-entry system is applied in accounting for the following transaction: Majestic Company purchases a piece of equipment costing $6,000,paying $3,000 cash with the balance of the purchase price to be paid within 60 days.