What is the journal entry for exchanging a \$150,000 note payable for land?

• A. Debit Cash \$150,000; Credit Land \$150,000
• B. Debit Land \$150,000; Credit Note Payable \$150,000
• C. Debit Note Payable \$150,000; Credit Land \$150,000
• D. Debit Land \$150,000; Credit Cash \$150,000

Answer: (B)