Purchased Equipment On Account Journal Entry is an accounting term that refers to the recording of a business’s purchase of necessary equipment for use in their operations. It involves tracking each item purchased, its cost, and whether it was acquired using cash or on credit. The balance in the Purchased Equipment On Account journal entry will appear as an asset on the company’s balance sheet, thus reflecting the value of the equipment that has been purchased. Additionally, the journal entry may contain details of any payment plan associated with the purchase, should it be done on credit terms. This ensures that the company stays up-to-date on their account balances so they can make timely payments.