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If the company purchased equipment with cash, what is the journal entry?

No matter what the method of payment is, when you purchase equipment, the debit will always be to equipment. Since the company is paying with cash, that represents a cash outflow (i.e. decrease in cash). Anytime there is a cash outflow, that results in a credit to cash.

The visual below illustrates what the journal entry would be if the company purchased $100 worth of equipment.


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