Multiple Choice
A business purchases equipment by paying cash of $8,000 and issuing a note payable of $12,000.Which of the following occurs?
A) Cash is credited for $8,000; Equipment is credited for $20,000; and Notes payable is debited for $12,000.
B) Cash is credited for $8,000; Equipment is debited for $20,000; and Notes payable is credited for $12,000.
C) Cash is debited for $8,000; Equipment is debited for $12,000; and Notes payable is credited for $20,000.
D) Cash is credited for $8,000; Equipment is credited for $12,000; and Notes payable is debited for $4,000.
Correct Answer:
Verified
Correct Answer:
Verified
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