A company purchased equipment for use in the business at a cost of $36,000,one-fourth was paid in cash,and the company signed a note for the balance.The journal entry to record this transaction will include a:
A)debit to Notes Payable of $27,000.
B)debit to Cash of $36,000.
C)credit to Notes Payable of $27,000.
D)debit to Equipment of $9,000.

Question

Quizplus · Accepted Answer

The journal entry will debit Equipment for $36,000,credit Cash for $9,000,and credit Notes Payable for $27,000.

A Company Purchased Equipment for Use in the Business at a Cost