Machinery Is Purchased on Credit for $16 000 Plus GST $\begin{array}{lrr}&\$ & \$ \\&\mathrm{DR} & \mathrm{CR}\\\text { Equipment } & 16000 \\\quad \text { Accounts Payable }&& 16000 \end{array}$

Short Answer

Machinery is purchased on credit for $16 000 plus GST.The general journal entry to record this transaction is: a. $\begin{array}{lrr}&\$ & \$ \\&\mathrm{DR} & \mathrm{CR}\\\text { Equipment } & 16000 \\\quad \text { Accounts Payable }&& 16000 \end{array}$

b. $\begin{array}{lr}\text { Equipment } & 14545 \\\text { GST Outlays } & 1455 \\ \text { Accounts Payable } &&16,000\end{array}$

c. $\begin{array}{lr}\text { Equity } & 16000 \\\text { GST Outlays } & 1600 \\\text { Accounts Payable } &&17,600\end{array}$

d. $\begin{array}{lr}\text { Equipment } & 16000 \\ \text { GST Outlays } & 1600\\\text { Accounts Payable }&&17,600\end{array}$