Equipment increases by the full acquired amount, while the cash payment and new payable together explain its financing.
This treats the payable as a decrease and Cash as if the full price were paid, reversing the stated financing effects.
This balances but ignores that only $3,000 cash was paid and that a $7,000 present obligation remains.
The financing lines balance, but the debit omits the controlled equipment asset and records unsupported immediate expense.
Answer: A
DebitCredit Debit: Equipment $10,000 Credit: Cash $3,000 Credit: Accounts Payable $7,000 Equipment is a debit-normal asset increasing by $10,000. Cash is a debit- normal asset decreasing by $3,000, and Accounts Payable is a credit-normal liability increasing by $7,000. The compound entry in choice A has one debit and two credits totaling $10,000.