Select the Entry Which Correctly Records the Purchase of a Building

question 12

Multiple Choice

Select the entry which correctly records the purchase of a building for $300 000 financed by a $100 000 cash deposit with the balance payable via a 20 year, 8% mortgage. Ignore GST.

• A) DR buildings $100 000; CR bank $100 000
• B) DR buildings $300 000; CR bank $300 000
• C) DR buildings $300 000; CR bank $100 000; CR mortgage $200 000
• D) DR buildings $300 000; CR capital $300 000

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Definitions:

Tank

An armored combat vehicle, typically armed with a large caliber cannon and movable on tracks, used in warfare.

Last Glacial Maximum

The period in the Earth's climatic history during the last ice age when ice sheets were at their maximum extent, covering much of North America, Europe, and Asia.

Global Sea Level

The average height of the Earth's oceans' surface, used as a standard basis for measuring elevation and depth on Earth.

Ice Volume

The amount of ice contained within glaciers, ice caps, and ice sheets globally or regionally.