Benson Co.purchased land and paid the full purchase price in cash.The journal entry necessary to record this event includes a:

Name: Benson Co.purchased land and paid the full purchase price in cash.The journal entry necessary to record this event includes a:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When a company purchases land and pays in cash, it results in a decrease in cash and an increase in land. Thus, the entry should debit Land (for the cost of the land) and credit Cash (for the amount paid). The correct option is D.

Benson CoPurchased Land and Paid the Full Purchase Price in Cash