A company acquires a building for \$200,000, paying \$50,000 in cash and signing a note payable for the remainder. What is the correct journal entry?

• A. Debit Building \$150,000; Credit Cash \$50,000; Credit Notes Payable \$100,000
• B. Debit Building \$200,000; Credit Cash \$50,000; Credit Notes Payable \$150,000
• C. Debit Building \$50,000; Credit Cash \$50,000; Credit Notes Payable \$150,000
• D. Debit Building \$200,000; Credit Cash \$200,000

Answer: (B)