Palisades Corporation purchased equipment by signing a long-term note payable.What was the effect of this transaction?

Question

Quizplus · Accepted Answer

When Palisades Corporation purchased equipment by signing a long-term note payable, it increased the assets (equipment) and increased the liabilities (note payable). This is because the corporation now owes money for the equipment it acquired through the note payable.

Palisades Corporation Purchased Equipment by Signing a Long-Term Note Payable