A company purchased equipment for use in the business at a cost of $12,000,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 $9,000.
B) debit to Cash of $12,000.
C) credit to Notes Payable of $9,000.
D) debit to Equipment of $3,000.

Question

Quizplus · Accepted Answer

The company paid $3,000 in cash (one-fourth of $12,000) and signed a note for the remaining $9,000, which is credited to Notes Payable.

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