Fluhman Medical Supply purchased machinery and equipment for $75,000, paying cash of $55, 000, with the remainder due to their supplier in 30 days. Which journal entry below properly records this transaction? Select one: a. Debit property, plant and equipment $75,000; debit accounts payable $20,000 and credit cash $55,000. b. Debit machinery and equipment expense $75,000; credit cash $55, 000, and credit loans payable $20,000. c. Debit cash $55,000; debit prepaid expenses $20,000; credit property, plant and equipment $75,000. d. Debit property, plant & equipment $75,000; credit accounts payable $20,000 and credit cash $55,000.

Fluhman Medical Supply purchased machinery and equipment for $75,000, paying cash of $55, 000, with the remainder due to their supplier in 30 days. Which journal entry below properly records this transaction? Select one: a. Debit property, plant and equipment $75,000; debit accounts payable $20,000 and credit cash $55,000. b. Debit machinery and equipment expense $75,000; credit cash $55, 000, and credit loans payable $20,000. c. Debit cash $55,000; debit prepaid expenses $20,000; credit property, plant and equipment $75,000. d. Debit property, plant & equipment $75,000; credit accounts payable $20,000 and credit cash $55,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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