Dina Corporation purchased plant assets for $60,000 cash.The journal entry to record the transaction that correctly shows the outflow of cash is:

Question

Quizplus · Accepted Answer

The journal entry to record the purchase of plant assets for cash would be a debit to Plant Assets for $60,000 and a credit to Cash for $60,000. Option B correctly shows a debit to Plant Assets and a credit to Cash. The other options either do not show both accounts or have the accounts reversed.

Dina Corporation Purchased Plant Assets for $60,000 Cash