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.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 6AP

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