What is the journal entry for exchanging a \$200,000 note payable for land?

• A. Debit Land \$200,000; Credit Cash \$200,000
• B. Debit Note Payable \$200,000; Credit Land \$200,000
• C. Debit Cash \$200,000; Credit Land \$200,000
• D. Debit Land \$200,000; Credit Note Payable \$200,000

Answer: (D)