Question

Record the acquisition of Delex, assuming the cash exchange of $147,000.

a. Debit Cash $147,000, Credit Delex $147,000.
b. Debit Delex $147,000, Credit Cash $147,000.
c. Debit Cash $147,000, Credit Accounts Receivable $147,000.
d. Debit Delex $147,000, Credit Accounts Payable $147,000.

Answer 1

To properly record the acquisition of Delex for $147,000 in cash, the correct accounting entry is to debit Delex and credit Cash for the amount of $147,000.

Step-by-step explanation:

The correct accounting entry to record the acquisition of Delex with a cash exchange of $147,000 should reflect an increase in an asset and a decrease in another asset, as cash is paid to acquire Delex. Therefore, the correct entry is: Debit Delex $147,000, Credit Cash $147,000. This entry shows that the company is acquiring Delex as an asset, costing them $147,000 cash.