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Understanding Double Entry Accounting: Recording Business Equipment Purchase with Cash and Loan Payable Transactions
accounting equipment purchase cash loan payable double entry accounting debit credit balance sheet accounts
A business purchases equipment by paying $9023 in cash and issuing a loan payable of $16,446. Which of the following occurs? Group of answer choices Cash is debited for $9023, equipment is credited for $16,446 and loan payable is debited for $7423. Cash is debited for $9023, equipment is debited for $16,446 and loan payable is credited for $25,469. Cash is credited for $9023, equipment is debited for $25,469 and loan payable is credited for $16,446. Cash is credited for $9023, equipment is credited for $25,469 and loan payable is debited for $16,446.

Cash is credited for $9023, equipment is debited for $25,469, and loan payable is credited for $16,446.

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