Homework Sourse1 Diaz Corporation purchased a computer system for 20000 The
| 1. | Diaz Corporation purchased a computer system for $20,000. The company paid $5,000 cash and issued a $15,000 note payable for the entire balance. The journal entry to record this transaction includes a(n) ________. | |||||||||
| A. | debit to Expense for $20,000 | |||||||||
| B. | credit to Cash for $20,000 | |||||||||
| C. | debit to Equipment for $20,000 | |||||||||
| D. | credit to Accounts Payable for $15,000 |
| 1. | Diaz Corporation purchased a computer system for $20,000. The company paid $5,000 cash and issued a $15,000 note payable for the entire balance. The journal entry to record this transaction includes a(n) ________. | |||||||||
| A. | debit to Expense for $20,000 | |||||||||
| B. | credit to Cash for $20,000 | |||||||||
| C. | debit to Equipment for $20,000 | |||||||||
| D. | credit to Accounts Payable for $15,000 |
Solution
The correct answer is C. debit to equipment for $ 20,000
Note : Cash would be credited by $ 5,000 and notes payable would be credited by $ 15,000
