A Business Purchases Equipment by Paying $6,081 in Cash and Issuing

question 73

Multiple Choice

A business purchases equipment by paying $6,081 in cash and issuing a note payable of $12,291.Which of the following occurs?

• A)Cash is credited for $6,081,Equipment is credited for $18,372,and Notes Payable is debited for $12,291.
• B)Cash is credited for $6,081,Equipment is debited for $18,372,and Notes Payable is credited for $12,291.
• C)Cash is debited for $6,081,Equipment is debited for $12,291,and Notes Payable is credited for $18,372.
• D)Cash is debited for $6,081,Equipment is credited for $12,291,and Notes Payable is debited for $6,210.

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Definitions:

Nonrenewable

Describes resources, such as fossil fuels or minerals, that cannot be replenished within a human lifespan when consumed.

Increased Methane

Increased methane refers to the rise in concentration of methane gas in an environment, which can significantly contribute to greenhouse gas effects and global warming.

Fisheries

Areas with a concentration of aquatic organisms such as fish, crustaceans, and mollusks, which are harvested for human consumption or trade.

Commercial Large-Scale

Pertaining to production or operations conducted on a wide, extensive scale, primarily for economic gain.