Which of the Following Journal Entries Is Recorded Correctly in the Basic

question 9

Short Answer

Which of the following journal entries is recorded correctly in the basic format (ignoring explanations)?

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Definitions:

Lienholder

A party that has a legal right or interest in a piece of property as security for a debt or charge.

Lien

A legal right or interest that a creditor has in the debtor's property, usually lasting until the debt that it secures is paid.

Legal Action

The process of seeking judicial intervention to enforce or protect a right through a lawsuit or other legal means.

Surety

A guarantee, typically by a third party, ensuring the fulfillment of an obligation or the performance of a contract.