a-company-buys-machinery-for-120000-paying-30000-in-cash-and-financing-the-rest-

Question

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?

Accepted Answer

Debit Machinery $$120,000; Credit Cash 30$$,000; Credit Notes Payable $90,000

Answer

Debit Machinery $$90,000; Credit Cash 30$$,000; Credit Notes Payable $60,000

Answer

Debit Machinery $$30,000; Credit Cash 30$$,000; Credit Notes Payable $90,000

Answer

Debit Machinery $$120,000; Credit Cash 120$$,000

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?