The purchase of a building with a down payment of cash and the signing of a note payable for the remainder would include a debit to both the Building account and the Notes Payable account,and a credit to the Cash account.

Question

Quizplus · Accepted Answer

The correct entry would include a debit to the Building account for the total purchase price, a credit to the Cash account for the amount of the down payment, and a credit to the Notes Payable account for the remainder of the purchase price.

The Purchase of a Building with a Down Payment of Cash