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.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 6EB: Blue Barns purchased 888 gallons of paint at $19 per gallon from a supplier on June 3. Terms of the...

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