A transaction has been recorded in the T-accounts of Simpson Company as follows:DebitCash850CreditMultiple ChoiceNotes PayableDebitWhich of the following could be an explanation for this transaction?CreditSimpson acquired $850 cash from the issue of common stock.The company loaned $850 to another company.The company repaid a $850 debt.The company borrowed $850.850

The correct answer is: (D) The company borrowed $850. The company borrowed $850. The journal entry…

A transaction has been recorded in the T-accounts of Simpson Company as follows: Debit Cash 850 Credit Notes Payable Debit Credit 850 Which of the following could be an explanation for this transaction?

A transaction has been recorded in the T-accounts of Simpson Company as follows: Debit Cash 850 Credit Notes Payable Debit Credit 850 Which of the following could be an explanation for this transaction?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

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A transaction has been recorded in the T-accounts of Simpson Company as follows:
Debit
Cash
850
Credit
Multiple Choice
Notes Payable
Debit
Which of the following could be an explanation for this transaction?
Credit
Simpson acquired $850 cash from the issue of common stock.
The company loaned $850 to another company.
The company repaid a $850 debt.
The company borrowed $850.
850

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