A transaction the cause asset of comapny A to increase by 19

A transaction the cause asset of comapny A to increase by 192000 and the libilities to increse by192000. Which of the following transactions could have cause of this to occur?

A The company collect 192000 cash for performing a service

B The company lent 192000 in cash to a customer

C The company purchased land and a building for 200,000 paying 8000 in cash and signing a note for 192000

D The shareholders invested 192000 in the company

Solution

To record transaction C, below Journal is required: Land & Building Account Dr. 200000 To Cash Account 8000 To Note Payable Account 192000 (Being transaction recorded) Impact of above transaction to Balance Sheet: Change in Asset Side: Increase in Fixed Asset 200000 Decrease in Cash 8000 Net Impact 192000 Change in Liability Side: Increase in Liabilities 192000 Net Impact 192000 So Answer is C