Purchased Equipment Journal Entries are the official records of the purchase and receipt of equipment for a business. It’s important to have an accurate record of all purchases to ensure that the company is getting a fair deal on its equipment and has appropriate controls in place to prevent overspending or wasting money. It’s also critical to track the amount of depreciation associated with the equipment so that it can be properly accounted for. By recording every purchase of equipment, businesses can track their expenditures, avoid problems with taxes, and properly allocate resources.