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Which of the Following Scenarios Could Explain the Journal Entry

Question 59

Multiple Choice

Which of the following scenarios could explain the journal entry below? Which of the following scenarios could explain the journal entry below?   A) The company buys $10,000 of equipment for $4,000 in cash and $6,000 on credit. B) The company receives $4,000 in cash and $6,000 in notes payable for selling 10,000 of equipment. C) The company buys $10,000 of equipment,for $4,000 cash and a promise to cancel $6,000 of debt owed to it. D) The company sells $10,000 of equipment,for $4,000 in cash and pays off $6,000 it owes on the equipment.


A) The company buys $10,000 of equipment for $4,000 in cash and $6,000 on credit.
B) The company receives $4,000 in cash and $6,000 in notes payable for selling 10,000 of equipment.
C) The company buys $10,000 of equipment,for $4,000 cash and a promise to cancel $6,000 of debt owed to it.
D) The company sells $10,000 of equipment,for $4,000 in cash and pays off $6,000 it owes on the equipment.

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