Your New Firm Just Purchased a Storage Building and Property

question 48

Multiple Choice

Your new firm just purchased a storage building and property for $40,000 that was paid for with a $20,000 long-term loan and a new infusion of $20,000 from the owners.Which of the following accounting entries is most appropriate?

• A)$40,000 increase in plant,property and equipment,a $20,000 decrease in long-term debt,and a $20,000 decrease in owners equity.
• B)$40,000 increase in plant,property and equipment,a $20,000 increase in long-term debt,and a $20,000 increase in owners equity.
• C)$40,000 increase in cash and a $40,000 increase in plant,property,and equipment.
• D)$40,000 increase in plant,property and equipment and a $40,000 increase in cash.

---

Definitions:

Methylphenidate

A stimulant medication used to treat attention deficit hyperactivity disorder (ADHD) and narcolepsy by increasing attention and decreasing impulsiveness and hyperactivity.

Psychodynamic Therapy

A form of depth psychology, focusing on the conscious and unconscious processes in the mind to alleviate psychic tension.

Cognitive-behavioral Therapy

A form of psychological treatment that addresses negative patterns of thought and behavior to improve mental health and well-being.

Attention-deficit/hyperactivity Disorder

A neurodevelopmental disorder characterized by inattention, hyperactivity, and impulsivity that interferes with functioning or development.