Question

Mr. Frank Blasi oporates a movio thoator at a downtown location. The theater's chart of accounts includes the following accounts. Account No. Account Title 101 Cash 111 Land 112 121 122 123 131 132 141 151 152 153 154 Building Accounts Payablo. Notos Payable Mortgage Payablo Frank Blasi, Capital Frank Blasi, Drawing Admissions Rovonuo Advertising Exponso Film Rontal Exponso Light and Power Exponso Salarios Exponso 13. On May 2, Mr. Blasi purchased land for $14,500 and a theater building for $30,500, paying cash in the amount of 25,000 and signing a note payable for the balance of 20,000. What two accounts were debited when this transaction was recorded? O A. Land and Buildings O B. Cash and Notes Payablo OC. Mortgage Payable and Accounts Payable OD. Frank Blasi, Capital, and Frank Blasi, Drawing Mark for review (Will be highlighted on the review pago)​

Answer 1

correct answer is option A: Land and Buildings.

Explanation:

When Mr. Frank Blasi purchased land for $14,500 and a theater building for $30,500, two accounts were debited in the recording of this transaction.

The accounts that were debited are:

1. Land: This account is debited with the value of the land purchase, which is $14,500. This reflects the increase in the land asset.

2. Buildings: This account is debited with the value of the building purchase, which is $30,500. This reflects the increase in the building asset.

So, the correct answer is option A: Land and Buildings.

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