The Pull-It vending store chain buys new candy machines for $450,000 and pays $5

Question

The Pull-It vending store chain buys new candy machines for $450,000 and pays $50,000 for installation. One-half of the total cost is paid in cash; the other half is financed. How should the company record this transaction? O Debit cash for $250,000, debit notes payable for $250,000 and credit equipment for $500,000. Debit equipment for $500,000, credit cash for $250,000 and credit notes payable for $250,000. O Debit equipment for $450,000, debit expenses for $50,000, credit cash for $250,000 and credit notes payable for $250,000. O Debit cash for $250,000, debit notes payable for $250,000 credit equipment for $450,000, and credit expenses for $50,000

Explanation / Answer

Answer is B

General Journal Debit Credit Equipment $500,000 Cash $250,000 Notes payable $250,000

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