on december 10, yummy catering purchased a new oven costing $10,000. they issued a check for $2,000 and…

on december 10, yummy catering purchased a new oven costing $10,000. they issued a check for $2,000 and promised to pay the balance in 30 days. the journal entry to record this transaction is: multiple choice account name debit credit equipment $ 8,000 cash $ 8,000 account name debit credit equipment $ 8,000 cash $ 2,000 accounts payable $ 10,000

on december 10, yummy catering purchased a new oven costing $10,000. they issued a check for $2,000 and promised to pay the balance in 30 days. the journal entry to record this transaction is: multiple choice account name debit credit equipment $ 8,000 cash $ 8,000 account name debit credit equipment $ 8,000 cash $ 2,000 accounts payable $ 10,000

Answer

Explanation:

Step1: Identify asset increase

The company purchased an oven (an asset), so the Equipment account is debited for the full cost of the oven, which is $10,000. Debit Equipment $10,000

Step2: Identify cash payment

A check for $2,000 was issued (a decrease in cash, an asset), so the Cash account is credited for $2,000. Credit Cash $2,000

Step3: Identify accounts - payable

The balance of $10,000 - $2,000=$8,000 is promised to be paid in 30 days, creating an accounts - payable (a liability). So Accounts Payable is credited for $8,000. Credit Accounts Payable $8,000 The correct journal entry should be:

Account Name Debit Credit
Equipment $10,000
Cash $2,000
Accounts Payable $8,000

However, looking at the given multiple - choice options, none of them are correct as presented. But if we assume there are some typos in the options and we analyze based on the closest logic: The oven (Equipment) is debited for its cost. The cash paid is credited, and the remaining amount owed is credited to Accounts Payable. The closest correct logic would be that Equipment should be debited for $10,000, Cash credited for $2,000 and Accounts Payable credited for $8,000. But among the given options, if we assume the intention of the second option:

Answer:

None of the provided options are correct. But if we had to choose the closest in terms of correct accounting logic with possible typos in the options, the second option has the right idea of debiting Equipment, crediting Cash for the amount paid and having an accounts - payable entry, although the amounts are incorrect in the presented options.