Carl's Carpentry purchased $10,000 of land and a building for $40,000.The company paid $20,000 cash and signed a long-term note for the amount still owed.How would the company record this transaction?
A)Debit Land for $50,000 and credit Cash for $50,000.
B)Debit Land for $10,000,debit Building for $40,000 and credit Cash for $50,000.
C)Debit Cash for $20,000,debit Notes Payable for $30,000,credit Land for $10,000,and credit Building for $40,000.
D)Debit Land for $10,000,debit Building for $40,000 credit Cash for $20,000,and credit Notes Payable for $30,000.
E)Debit Building for $20,000 and Notes Payable for $20,000.

Question

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The company should debit Land for $10,000 and Building for $40,000 to reflect the assets acquired, credit Cash for $20,000 for the amount paid, and credit Notes Payable for $30,000 for the amount still owed.

Carl's Carpentry Purchased $10,000 of Land and a Building for $40,000.The