A company buys machinery for \$120,000, paying \$30,000 in cash and financing the rest with a note payable. What is the correct journal entry?

• A. Debit Machinery \$90,000; Credit Cash \$30,000; Credit Notes Payable \$60,000
• B. Debit Machinery \$30,000; Credit Cash \$30,000; Credit Notes Payable \$90,000
• C. Debit Machinery \$120,000; Credit Cash \$30,000; Credit Notes Payable \$90,000
• D. Debit Machinery \$120,000; Credit Cash \$120,000

Answer: (C)