on march 15, complete computer service purchased a $25,000 building in exchange for a notes payable.

the journal entry to record this transaction would be:

Question

on march 15, complete computer service purchased a $25,000 building in exchange for a notes payable.

the journal entry to record this transaction would be:

Accepted Answer

{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "multiple_choice_formatter", "explain_then_answer", "quick" ], "needs_drawing": false, "concepts_used": [], "new_concepts": [ "Journal Entry", "Notes Payable", "Asset Acquisition" ], "current_concepts": [ "Journal Entry", "Notes Payable", "Asset Acquisition" ] } ## Identify the accounts affected by the transaction $$ \begin{aligned} &\text{Asset Increase: Building (Debit)} \ &\text{Liability Increase: Notes Payable (Credit)} \end{aligned} $$ ## Determine the debit and credit amounts $$ \begin{aligned} &\text{Debit Building: } \$25,000 \ &\text{Credit Notes Payable: } \$25,000 \end{aligned} $$ ## Match with the correct journal entry option $$ \begin{array}{l|l|c|c} \text{Date} & \text{Accounts} & \text{Debit} & \text{Credit} \ \hline \text{March 15} & \text{Building} & 25,000 & \ & \quad\text{Notes Payable} & & 25,000 \end{array} $$

(A) Debit Building 25,000; Credit Cash 25,000

(B) Debit Notes Payable 25,000; Credit Building 25,000

(C) Debit Building 25,000; Credit Notes Payable 25,000

(D) Debit Cash 25,000; Credit Building 25,000

(E) I don't know yet

{ "subject": "Business", "question_type": "Multiple Choice", "knowledge_point": [ "Business", "Accounting", "Journal Entries" ] }

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QUESTION IMAGE

Question

Explanation:

Identify the accounts affected by the transaction

Determine the debit and credit amounts

Match with the correct journal entry option

Answer: