A group of neighbors interested in creating a football league created an association and purchased land for $100,000 paying $40,000 in cash and signing a $60,000 note payable due in 90 days for the balance. How will this transaction impact on the accounting equation? Group of answer choices Increase one asset and decrease a liability Increase asets and increase stockholders' equity Increase assets and increase liabilities Increase one asset and decrease another asset
A group of neighbors interested in creating a football league created an association and purchased land for $100,000 paying $40,000 in cash and signing a $60,000 note payable due in 90 days for the balance. How will this transaction impact on the accounting equation? Group of answer choices Increase one asset and decrease a liability Increase asets and increase stockholders' equity Increase assets and increase liabilities Increase one asset and decrease another asset
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A group of neighbors interested in creating a football league created an association and purchased land for $100,000 paying $40,000 in cash and signing a $60,000 note payable due in 90 days for the balance. How will this transaction impact on the
Group of answer choices
Increase one asset and decrease a liability
Increase asets and increase stockholders' equity
Increase assets and increase liabilities
Increase one asset and decrease another asset
Expert Solution
Step 1
The journal entry for the given transaction would include a debit to Land account for $100,000 , credit to cash account for $40,000 and credit to Note payable for $60,000
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