Application Technologies Has Acquired Equipment Costing $15,000

question 29

Multiple Choice

Application Technologies has acquired equipment costing $15,000.The company paid $5,000 and gave a 10-month note for the balance.The bookkeeper should

• A)debit Equipment for $15,000,credit Cash for $5,000,and credit Notes Receivable for $10,000.
• B)debit Cash for $5,000,debit Notes Receivable for $10,000,and credit Equipment for $15,000.
• C)debit Equipment for $15,000,credit Cash for $5,000,and credit Notes Payable for $10,000.
• D)debit Cash for $5,000,debit Notes Payable for $10,000,and credit Equipment for $15,000.
• E)debit Equipment for $15,000,debit Cash for $5,000,credit Notes Payable for $10,000,and credit Paid-in Capital for $5,000.

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Definitions:

Corporate Codes of Conduct

Formal statements delineating the ethical standards and behaviors expected from employees and stakeholders within a corporation, aiming to guide actions and decision-making.

Third-Party Certifications

Certifications or validations provided by independent organizations or bodies that verify a particular standard or quality has been met.

Arbitration

A method of dispute resolution where an impartial third party, known as an arbitrator, makes a decision to resolve a disagreement between two or more parties.

Valid Contract

A legally binding agreement between parties that meets all the essential requirements of lawful consideration, offer and acceptance, competent parties, and legal purpose.