38 Able Company purchased a truck worth $20,000. The company paid $5,000 incash and incurred a bank loan for the difference. The general ledger accounteffects are:O Truck is debited for $15,000, Cash is credited for $5,000 and Bank Loan is credited for$15,000O Bank Loan is debited for $20,000, Cash is credited for $5,000 and Truck is credited for$15,000O Truck is debited for $20,000, Cash is credited for $5,000 and Bank Loan is credited for$15,000O Truck is debited for $20,000 and Bank Loan is credited for $20,000

General ledger: It is the record of all the transactions of the business in the form of accounts.…

Able Company purchased a truck worth $20,000. The company paid $5,000 in cash and incurred a bank loan for the difference. The general ledger account effects are: Truck is debited for $15,000, Cash is credited for $5,000 and Bank Loan is credited for $15,000 Bank Loan is debited for $20,000, Cash is credited for $5,000 and Truck is credited for $15,000 O Truck is debited for $20,000, Cash is credited for $5,000 and Bank Loan is credited for $15,000 Truck is debited for $20,000 and Bank Loan is credited for $20,000

Able Company purchased a truck worth $20,000. The company paid $5,000 in cash and incurred a bank loan for the difference. The general ledger account effects are: Truck is debited for $15,000, Cash is credited for $5,000 and Bank Loan is credited for $15,000 Bank Loan is debited for $20,000, Cash is credited for $5,000 and Truck is credited for $15,000 O Truck is debited for $20,000, Cash is credited for $5,000 and Bank Loan is credited for $15,000 Truck is debited for $20,000 and Bank Loan is credited for $20,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 7MCQ

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