The journal entry to acquire equipment costing $30,000 with a $12,000 down payment and a note issued for the difference would include a

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The journal entry should reflect the full cost of the equipment being acquired (debit to Equipment for $30,000) as well as the source of funds used to acquire it. Since there is a down payment of $12,000, this should be credited to Cash. The remaining amount ($18,000) is being financed through a note, so this should be credited to Notes Payable. Thus, the journal entry should be: debit to Equipment for $30,000, credit to Notes Payable for $18,000, and credit to Cash for $12,000.

The Journal Entry to Acquire Equipment Costing $30,000 with a $12,000