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Jackson Company Purchased a New Car for $30,000 by Paying

Question 61

Multiple Choice

Jackson Company purchased a new car for $30,000 by paying $12,000 cash, and trading in an old car with a recorded net cost and market value of $10,000. They also signed a Note for $8,000.
The required journal entry will not:


A) Increase New Car for $30,000
B) Decrease Notes Payable for $8,000
C) Decrease Old Car for $10,000
D) Increase Notes Payable for $8,000

Correct Answer:

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