Purchasing a building for $120,000 by paying cash of $35,000 and signing a note payable for $85,000 will A. increase both total assets and total liabilities by $120,000. B. decrease total assets and increase total liabilities by $35,000. C. decrease both total assets and total liabilities by $35,000. D. increase both total assets and total liabilities by $85,000.

Purchasing a building for $120,000 by paying cash of $35,000 and signing a note payable for $85,000 will A. increase both total assets and total liabilities by $120,000. B. decrease total assets and increase total liabilities by $35,000. C. decrease both total assets and total liabilities by $35,000. D. increase both total assets and total liabilities by $85,000.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

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

Section19.6: Buying Intangible Assets And Calculating Amortization Expense

Problem 1WT

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