A company purchased equipment for $150,000 by paying $50,000 and signing a $100,000 note payable.The entire transaction is disclosed to users on the statement of cash flows and/or in its notes.

Question

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The company's purchase of equipment for $150,000 is a significant transaction that would be disclosed on the statement of cash flows or in the notes to the financial statements. The fact that part of the purchase price was paid in cash and part was financed with a note payable would also be disclosed.

A Company Purchased Equipment for $150,000 by Paying $50,000 and Signing