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A business purchases equipment by paying in cash and issuing a note payable of . Which of the following​ occurs? A. Cash is credited for ​, Equipment is credited for ​, and Notes Payable is debited for . B. Cash is credited for ​, Equipment is debited for ​, and Notes Payable is credited for . C. Cash is debited for ​, Equipment is debited for ​, and Notes Payable is credited for . D. Cash is debited for ​, Equipment is credited for ​, and Notes Payable is debited for .

Respuesta :

Answer: Cash is credited for, Equipment is debited for and Notes Payable is credited for.

Explanation:

Let's assume the business purchases equipment by paying $5000 in cash and then issued a note payable of $15000.

Then, the journal entry will be:

Debit Equipment $20000

Credit Cash ($20000 - $15000)=$5000

Credit Note payable $15000

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