Question

What is the accounting journal entry for the purchase of a building?

1) Debit Building, Credit Cash
2) Debit Building, Credit Accounts Payable
3) Debit Cash, Credit Building
4) Debit Accounts Payable, Credit Building

Answer 1

The correct accounting journal entry for the purchase of a building is: Debit Building, Credit Cash.

Step-by-step explanation:

The correct accounting journal entry for the purchase of a building is:

1. Debit Building: To record the increase in the value of the building asset.
2. Credit Cash: To record the decrease in the cash asset as a result of the purchase.

Option 1) Debit Building, Credit Cash is the correct answer.