Question

Give the journal entry (FOR FULL CREDIT ALWAYS GIVE JOURNAL ENTRIES IN PROPER FORM: see Hints/FAQ tab for guidelines) when a building is purchased for $20,000 cash & a notes payable for $40,000:
1. Both the account title AND dollar amount being credited MUST be indented to show right vs. left.
2. The total dollar amount being debited MUST equal the total dollar amount being credited.
3. Do NOT use the $ sign or the words "debit" or "credit" as this is evident when you use proper form.
4. Line up the BEGINNING of your account titles & END of dollar amounts being debited vs. those being credited.
CORRECT FORM: Equipment 20,000
Cash 1,000
Common Stock 21,000 line up names/dollar amounts being credited vs. debited

Answer 1

The journal entry of a building being purchased will be, a debit in the building account by $60,000; and the cash account and payables account will be credited by $20,000 and $40,000 respectively.

What is a Journal Entry?

A method of recording the monetary transactions of a business firm throughout a financial period, in such a way that effects of the same are reflected in the financial statements, is known as recording of journal entries.

Hence, the effect of the journal entry has been given above, and an image is also provided for better understanding of the concept for the readers.

Learn more about journal entry here:
brainly.com/question/20421012

#SPJ1