The purchase of a building using a promissory note with a term of 15 years will have what effect on the accounting equation?

The purchase of a building using a promissory note with a term of 15 years will result to an increase in the Total Assets and an increase in the Total Liabilities with no effect on the equity portion. The basic accounting equation is Assets = Liabilities + Equity. A purchase of a building using a promissory note would result to a debit in the Building account which is an asset and a credit to the Note payable account which is a liability, both representing an increase. The proforma journal entry for the said transaction is as follows: