A Business Purchases Equipment by Paying $8,000 in Cash and Issuing

question 13

Multiple Choice

A business purchases equipment by paying $8,000 in cash and issuing a note payable of $12,000. Which of the following journal entries would be recorded?

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Definitions:

Net Income

The net income a company earns once all costs and taxes are subtracted from the total revenues.

Investments

Assets purchased with the expectation that they will generate income or appreciate in value over time.

Accounting Process

The sequence of activities involving the recording, classification, and summarizing of economic transactions to provide financial information.

Communicating

The process of conveying information between individuals or within an organization to ensure understanding and effective operation.