Answer:
The correct answer is C
Explanation:
The journal entry which is to be posted or recorded for the purchase of equipment is as:
Equipment A/c....................................Dr25,453
Cash A/c..............................................Cr $6,276
Notes Payable A/c............................Cr $19,177
Being record the purchase of equipment and paid $6,276 amount in cash as well as issue the notes payable for the balance amount
As the business bought the equipment which means assets is increasing and any increase in cash is debited. Therefore, the equipment account is debited. And it is bought against cash, so cash is decreasing, so any decrease in cash is credited. Therefore, the cash account is credited. And against the amount of $19,177, issued the notes payable, so liability is increasing and any increase in liability will be credited. Therefore, the notes payable is credited.
