Which of the Following Scenarios Could Explain the Journal Entry

question 70

Multiple Choice

Which of the following scenarios could explain the journal entry below?

• A)The company buys $10,000 of equipment for $4,000 in cash and $6,000 on credit.
• B)The company pays $4,000 in cash and $6,000 in notes payable to buy $10,000 of equipment.
• C)The company sells $10,000 of equipment,for $4,000 in cash and $6,000 on credit.
• D)The company sells $10,000 of equipment,for $4,000 in cash and pays off $6,000 it owes on the equipment.

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Definitions:

Heavily Cratered

Describes a surface, usually of a planet or moon, that has a large number of impact craters due to collisions with meteoroids, asteroids, or comets.

Little to No Atmosphere

Describes celestial bodies or locations that lack a significant atmospheric layer or have a very thin one.

Lunar Highlands

High elevations on the Moon that contain a light-colored, heavily cratered material; syn. cratered highlands.

Feldspar Rich

Referring to rocks or minerals containing a high proportion of feldspar, a group of silicate minerals that are among the most abundant in the Earth's crust.