Purchasing a building for $115,000 by paying cash of $25,000 and signing a note payable for $90,000 willa. decrease total assets and increase total liabilities by $25,000.b. increase both total assets and total liabilities by $115,000.c. decrease both total assets and total liabilities by $25,000.d. increase both total assets and total liabilities by $90,000.

Purchasing a building for $115,000 by paying cash of $25,000 and signing a note payable for $90,000 willa. decrease total assets and increase total liabilities by $25,000.b. increase both total assets and total liabilities by $115,000.c. decrease both total assets and total liabilities by $25,000.d. increase both total assets and total liabilities by $90,000.

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Description: Purchasing a building for $115,000 by paying cash of $25,000 and signing a note payable for $90,000 willa. decrease total assets and increase total liabilities by $25,000.b. increase both total assets and total liabilities by $115,000.c. decrease bot

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 8DQ

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7: Purchased a building with a market value of $ 120 comma 000$120,000, and land with a market value of $ 24 comma 000$24,000. The business paid $ 45 comma 000$45,000 cash and signed a note payable to the bank for the remaining amount I'm confused as too which is credit and how to add the answer to the balance sheet etc.
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