Which of the following is the appropriate journal entry if a company purchases equipment costing $100,000 by paying cash of $10,000?
A)Debit to Cash,debit to Equipment,credit to Notes Payable.
B)No entry should be made.
C)Debit to Equipment,credit to Notes Payable,credit to Cash.
D)Debit to Cash,debit to Notes Payable,credit to Equipment.
E)Debit to Equipment,debit to Notes Payable,credit to Cash.

Question

Quizplus · Accepted Answer

The correct entry is to debit Equipment for $100,000, credit Cash for $10,000, and credit Notes Payable for $90,000, reflecting the cash paid and the liability incurred.

Which of the Following Is the Appropriate Journal Entry If