A business purchases equipment by paying $9,087 in cash and

A business purchases equipment by paying $9,087 in cash and issuing a note payable of $13,264. Which of the following occurs?

A) Cash is credited for $9,087, Equipment is credited for $22,351, and Notes Payable is debited for $13,264.
B) Cash is credited for $9,087, Equipment is debited for $22,351, and Notes Payable is credited for $13,264.
C) Cash is debited for $9,087, Equipment is debited for $13,264,and Notes Payable is credited for $22,351.
D) Cash is debited for $9,087, Equipment is credited for $13,264, and Notes Payable is debited for $4,177.

ANSWER

B