A Company Entered into the Following Transaction: Purchased Equipment for Use

question 116

Multiple Choice

A company entered into the following transaction: Purchased equipment for use in the business at a cost of $12,000,one-fourth was paid in cash and the company signed a note for the balance.Choose the TRUE statement about the journal entry to record this transaction.

• A)The journal entry will include a debit to Notes Payable of $9,000.
• B)The journal entry will include a debit to Cash of $12,000.
• C)The journal entry will include a credit to Notes Payable of $9,000.
• D)The journal entry will include a debit to Equipment of $3,000.

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