Gilbert Company purchased equipment financed by the issuance of a 4-year note payable. To record this, Gilbert will

Question

Quizplus · Accepted Answer

When Gilbert Company purchases equipment financed by the issuance of a note payable, it results in an increase in the company's assets (the equipment) and liabilities (the note payable). Therefore, the correct journal entry would be to debit the assets account (Equipment) and credit the liabilities account (Notes Payable).

Gilbert Company Purchased Equipment Financed by the Issuance of a 4-Year