Schooner Inc. purchased equipment by signing a note payable. This transaction would be recorded as:

Schooner Inc. purchased equipment by signing a note payable. This transaction would be recorded as:


A) Debit Equipment, credit Cash.

B) Debit Cash, credit Notes Payable.

C) Debit Notes Payable, credit Equipment.

D) Debit Equipment, credit Notes Payable.


Answer: D


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