Select the Entry Which Correctly Records the Purchase of a Building

Multiple Choice

Select the entry which correctly records the purchase of a building for $300 000 financed by a $100 000 cash deposit with the balance payable via a 20 year, 8% mortgage. Ignore GST.

A) DR buildings $100 000; CR bank $100 000
B) DR buildings $300 000; CR bank $300 000
C) DR buildings $300 000; CR bank $100 000; CR mortgage $200 000
D) DR buildings $300 000; CR capital $300 000