Zeus Greek Foods purchased a $21,000 van for use in the business.The company made a $15,000 cash down payment,and signed a note for the balance.The effect of this transaction on Zeus Greek Foods would be to
A)increase the van account by $21,000,decrease the cash account by $15,000,and decrease the notes receivable account by $6,000.
B)increase the van account by $21,000,decrease the cash account by $15,000,and decrease the notes payable account by $6,000.
C)increase the van account by $15,000 and decrease the cash account by $15,000.
D)increase the van account by $21,000,decrease the cash account by $15,000,and increase the notes payable account by $6,000.
E)decrease the van account by $15,000 and increase the cash account by $15,000.

Question

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When Zeus Greek Foods purchases a $21,000 van for use in the business, it will increase the van account by $21,000. The company made a $15,000 cash down payment, which will decrease the cash account by $15,000. The remaining balance of $6,000 is signed in the note, which becomes a notes payable account and is increased by $6,000. Therefore, the effect of this transaction on Zeus Greek Foods would be to increase the van account by $21,000, decrease the cash account by $15,000, and increase the notes payable account by $6,000.

Zeus Greek Foods Purchased a $21,000 Van for Use in the Business.The