The Gulp Convenience Store Chain Buys New Soda Machines for $450,000

question 63

Multiple Choice

The Gulp convenience store chain buys new soda machines for $450,000 and pays $50,000 for installation.One-half of the total cost is paid in cash; the other half is financed.How should the company record this transaction?

• A)Debit cash for $250,000,debit notes payable for $250,000,and credit equipment for $500,000.
• B)Debit equipment for $500,000,credit cash for $250,000,and credit notes payable for $250,000.
• C)Debit cash for $250,000,debit notes payable for $250,000 credit equipment for $450,000,and credit expenses for $50,000.
• D)Debit equipment for $450,000,debit expenses for $50,000,credit cash for $250,000,and credit notes payable for $250,000.

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Definitions:

Genetic Information

Data regarding an organism's genes, their functions, and their influence on physical and behavioral characteristics, derived from DNA analysis.

Breeding Populations

Groups of organisms that are selected and mated to perpetuate certain genetic traits or to increase the genetic diversity of offspring.

Isolating Factors

Conditions or barriers that inhibit the interaction, interbreeding, or cultural exchange between populations, leading to differentiation or speciation in biology, or cultural divergence.

Adaptive Function

Refers to the way behaviors or traits contribute to an organism's survival and reproductive success in its environment.