Question

Crane purchases equipment by signing a note payable with the equipment dealer for $10,000. The accounts affected for Crane are ___________.

Answer 1

Equipment and notes payable

Step-by-step explanation:

Since the equipment is purchased by signing the note payable which affected the two accounts i.e equipment and the note payable. In this, the cash transaction is not involved, so cash should not be considered

The journal entry would be

Equipment A/c Dr $10,000

To Notes payable $10,000

(Being the equipment is purchased by signing a note payable)