If a company purchases a building for $500,000, paying $100,000 in cash and financing the remaining $400,000, which of the following journal entries will the company record?
(Select one correct option only)

Question

If a company purchases a building for $500,000, paying $100,000 in cash and financing the remaining $400,000, which of the following journal entries will the company record? 
 (Select one correct option only)

Answer

Debit Building $500,000, Credit Cash $100,000, Credit Receivable $400,000

Answer

Debit Building $500,000, Credit Loan Payable $500,000

Answer

Debit Building $500,000, Credit Cash $400,000, Credit Loan Payable $100,000

Answer

Debit Building $400,000, Credit Cash $100,000, Credit Loan Payable $400,000

Crowdly

If a company purchases a building for $500,000, paying $100,000 in cash and fina...

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