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

question 34

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 receivable of $3,000.
• 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 credit to Equipment $12,000.

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