The Gulp convenience store chain buys new soda machines for $450,000 and pays $50,000 for installation.One-half of the total cost is paid in cash;the other half is financed.How should the company record this transaction?
A)Debit cash for $250,000,debit notes payable for $250,000 and credit equipment for $500,000.
B)Debit equipment for $500,000,credit cash for $250,000 and credit notes payable for $250,000.
C)Debit cash for $250,000,debit notes payable for $250,000 credit equipment for $450,000,and credit expenses for $50,000.
D)Debit equipment for $450,000,debit expenses for $50,000,credit cash for $250,000 and credit notes payable for $250,000.

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The Answer of The Gulp convenience store chain buys new soda machines for $450,000 and pays $50,000 for installation.One-half of the total cost is paid in cash;the other half is financed.How should the company record this transaction?
A)Debit cash for $250,000,debit notes payable for $250,000 and credit equipment for $500,000.
B)Debit equipment for $500,000,credit cash for $250,000 and credit notes payable for $250,000.
C)Debit cash for $250,000,debit notes payable for $250,000 credit equipment for $450,000,and credit expenses for $50,000.
D)Debit equipment for $450,000,debit expenses for $50,000,credit cash for $250,000 and credit notes payable for $250,000.

The Gulp Convenience Store Chain Buys New Soda Machines for $450,000