What is the correct journal entry to record the purchase of a machine?

To record the purchase of a machine, the correct journal entry involves recognizing the asset (the machine) and how it was financed (in this case, through cash). When the machine is purchased, the asset account for the machine is debited to reflect the increase in assets on the balance sheet. This entry signifies that the company now owns the machine and has added its value to the asset side of the accounting equation.

At the same time, cash is credited to indicate a decrease in cash resources, as the company has spent money to acquire the machine. This dual-entry approach maintains the balance in the accounting equation (Assets = Liabilities + Equity), ensuring that the acquisition is accurately reflected in the company’s financial records.

Other options do not accurately represent the proper accounting for this transaction. For instance, the crediting of an expense account or incorrectly reflecting cash movements does not accurately depict the nature of the transaction. Therefore, the choice that correctly sets out the purchase of the machine through a debit to the asset account and a credit to cash is the right approach for this situation.