A Company Purchased Equipment for Use in the Business at a Cost

question 43

Multiple Choice

A company purchased equipment for use in the business at a cost of $36,000,one-fourth was paid in cash,and the company signed a note for the balance.The journal entry to record this transaction will include a:

• A)debit to Notes Payable of $27,000.
• B)debit to Cash of $36,000.
• C)credit to Notes Payable of $27,000.
• D)debit to Equipment of $9,000.

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Definitions:

Dimensional-Analysis

A technique in physics and engineering used to convert one set of measurements to another, ensuring that the mathematical equation relationships remain consistent.

Conversion Factor

A numerical value used to convert a quantity expressed in one unit to the equivalent quantity expressed in another unit.

Pounds

A unit of weight commonly used in the United States, equivalent to 0.453592 kilograms.

Kg

Abbreviation for kilogram, a unit of mass equal to one thousand grams.