1. Diaz Corporation purchased a computer system for $20,000. The company paid $5

Question

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

Explanation / Answer

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

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