Open a general journal form like the one in Exhibit 4, and label it Page 10.

After opening the form, record the following transactions in the journal:

Dec. 14 Purchased equipment for $12,000, paying $4,000 as a cash down payment.

28 Paid $6,000 of the amount owed on the equipment.

Prepare three ledger account forms like the one shown in Exhibit 5. Use the following account numbers: Cash, 111; Equipment, 144; and Accounts Payable, 212. Then post the two transactions from the general journal to the ledger accounts, being sure to make proper posting references.

Assume that the Cash account has a debit balance of $16,000 on the day prior to the first transaction.

Cash Return on Assets