S & C, Inc. purchases a building for $70,000 cash. The journal entry would include a:

Question

Quizplus · Accepted Answer

When a business purchases a building for cash, the journal entry includes a debit to the building account (an asset account) to record the increase in the asset's value and a credit to the cash account (an asset account) to reflect a decrease in the assets. The purchase of the building does not involve any stock issuances or accounts payable transactions. Therefore, the correct answer is A, debit to Building and a credit to Cash.