A company purchased land costing $27,000 by making a 25 percent cash down payment and signing a 90-day note for the balance.The entry to record this transaction would

Question

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The company's purchase of land increases its total assets since it now owns a new asset, the land. The down payment made and the signing of the note will not affect total liabilities, contributed capital, or retained earnings.

A Company Purchased Land Costing $27,000 by Making a 25