Your new firm just purchased a storage building and property for $40,0

Your new firm just purchased a storage building and property for $40,000 that was paid for with a $20,000 long-term loan and a new infusion of $20,000 from the owners. Which of the following accounting entries is most appropriate?

A) $40,000 increase in plant, property and equipment, a $20,000 decrease in long-term debt, and a $20,000 decrease in owners equity.
B) $40,000 increase in plant, property and equipment, a $20,000 increase in long-term debt, and a $20,000 increase in owners equity.
C) $40,000 increase in cash and a $40,000 increase in plant, property, and equipment.
D) $40,000 increase in plant, property and equipment and a $40,000 increase in cash.

ANSWER

B