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?

---

Definitions:

Earning Revenue

The income a company generates from its business activities, typically from the sale of goods or services.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the owners' claim on the business assets.

Assets

Economic resources owned or controlled by a business, expected to provide future benefits.

Monetary Unit Assumption

An accounting principle that assumes all transactions and financial statements are recorded in a single currency.