Land is purchased by making a cash down payment of $40,000 and signing a note payable for the balance of $130,000. The journal entry to record this transaction in the accounting records of the purchaser includes: a)A credit to Land for $40,000. b)A debit to Cash for $40,000. c)A debit to Land for $170,000. d)A debit to Note Payable for $130,000.
Land is purchased by making a cash down payment of $40,000 and signing a note payable for the balance of $130,000. The journal entry to record this transaction in the accounting records of the purchaser includes: a)A credit to Land for $40,000. b)A debit to Cash for $40,000. c)A debit to Land for $170,000. d)A debit to Note Payable for $130,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Land is purchased by making a cash down payment of $40,000 and signing a note payable for the balance of $130,000. The
a)A credit to Land for $40,000.
b)A debit to Cash for $40,000.
c)A debit to Land for $170,000.
d)A debit to Note Payable for $130,000.
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