10-15 (Static) Financial statement impact of note transactions LO C1 ze transactions involving issuance of the note and its first annual payment, by showing their effects on the accounting equation ecifically, identify the accounts and amounts (including + or -) for each transaction. Date nuary 1 ember 31 Cash Cash Assets (+) increase (-) decrease = Notes payable 340,000 85,155= Notes payable Liabilities (+) increase (-) decrease 340,000 + 57,955 Equity

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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How do I get to the equity?

Use the following information for the Quick Studies below. (Static)
[The following information applies to the questions displayed below.]
On January 1, MM Company borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual
payments of $85,155 each.
S 10-15 (Static) Financial statement impact of note transactions LO C1
nalyze transactions involving issuance of the note and its first annual payment, by showing their effects on the accounting equation
specifically, identify the accounts and amounts (including + or -) for each transaction.
Date
January 1
December 31
Cash
Cash
Assets
(+) increase
(-) decrease
340,000 =
85,155 =
Notes payable
Notes payable
Liabilities
(+) increase
(-) decrease
340,000
57,955
+
+
Equity
Transcribed Image Text:Use the following information for the Quick Studies below. (Static) [The following information applies to the questions displayed below.] On January 1, MM Company borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of $85,155 each. S 10-15 (Static) Financial statement impact of note transactions LO C1 nalyze transactions involving issuance of the note and its first annual payment, by showing their effects on the accounting equation specifically, identify the accounts and amounts (including + or -) for each transaction. Date January 1 December 31 Cash Cash Assets (+) increase (-) decrease 340,000 = 85,155 = Notes payable Notes payable Liabilities (+) increase (-) decrease 340,000 57,955 + + Equity
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