Crown King Burgers Purchased New Soda Machines for $900,000 and Pays

Multiple Choice

Crown King Burgers purchased new soda machines for $900,000 and pays $100,000 for installation costs.One-half of the total cost or $500,000 is paid in cash;a note in the amount of $500,000 is signed.How should the company record this transaction?

A) Debit Cash for $500,000,debit Notes Payable for $500,000,and credit Equipment for $1,000,000.
B) Debit Equipment for $1,000,000,credit Cash for $500,000,and credit Notes Payable for $500,000.
C) Debit cash for $500,000,debit Notes Payable for $500,000,credit Equipment for $900,000,and credit Operating Expenses for $100,000.
D) Debit Equipment for $900,000,debit Operating Expenses for $100,000,credit cash for $500,000,and credit Notes Payable for $500,000.