A business purchases equipment by paying $8,000 in cash and issuing a note payable of $12,000. Which of the following occurs?

Cash is credited for $8,000; Equipment is debited for $20,000; and Notes Payable is credited for $12,000.

Cash is debited for $8,000; Equipment is debited for $12,000; and Notes Payable is credited for $20,000.

Cash is debited for $8,000; Equipment is credited for $12,000; and Notes Payable is debited for $4,000.

Cash is credited for $8,000; Equipment is credited for $20,000; and Notes Payable is debited for $12,000.