Kindly provide correct answer Anisha Company had a transaction that caused a $30,000 increase inboth assets and liabilities. This transaction could have been a(n):a. Purchase of office equipment for $44,000, paying $14,000 cash andissuing a note payable for the balance.b. Investment of $30,000 cash in the business by the stockholders.c. Repayment of a $30,000 bank loan.d. Purchase of office equipment for $30,000 cash.

Accounting equation: Assets = Liabilities + Equity Option A is correct The purchase of office…

Answered: Anisha Company had a transaction that…

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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Pigeon Company had a transaction that caused a $5,000 increase in both assets and total liabilities. This transaction could have been a(n) A) payment of a $5,000 accounts payable balance B) purchase of office equipment for $12,000, paying $7,000 cash and issuing a note payable for the balance C) investment of $5,000 cash in the business by the stockholders D) repayment of a $5,000 bank loan E) purchase of office equipment for $5,000 cash
Park & Company was recently formed with a $6,000 investment in the company by stockholders in exchange for common stock. The company then borrowed $3,000 from a local bank, purchased $1,100 of supplies on account, and also purchased $6,000 of equipment by paying $2,100 in cash and signing a promissory note for the balance. Based on these transactions, the company's total assets are
Saddleback Company paid off $36,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation? Multiple Cholce Assets, $36,000 Increase; equlty. $36,000 Increase. Assets, $36,000 decrease: liabilitles, $36,000 decrease. Assets, $36,000 decrease; liabilities, $36,000 Increase. Llabilitles, $36,000 decrease; egulty, $36,000 Increase. Assets, $36,000 decrease; gulty $36,000 decrease.
When a company buys equipment for $161,000 and pays for one half in cash and the other one half is financed by a note payable, which of the following are the effects on the accounting equation? a. Total assets increase $161,000 b. Total liabilities increase $161,000 c. Total liabilities decrease $80,500 d. Total assets increase $80,500
Which of the following statements is true of this transaction?
24. A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the balance.In a statement of cash flows, what amount is included in investing activities for the above transaction? Zero Acquisition price Mortgage amount Cash payment
Determine the effects of the following transactions on Current assets, Current liabilities, and Working Capital. Write “Inc” for an Increase, “Dec” for a Decrease, or “NE” if there is No Effect. Write your answers in the blanks provided. Current Asset Current Liability Net Working Capital 1. Sale of merchandise on account 2. Acquired shares of ABS CBN for cash 3. Pays the long-term debt of P150,000 4. Sells old machine for P10,000 cash 5. Issued shares of stock to cash investors 6. Declared cash dividends 7. Payment of advance rentals (asset method) 8. One year loan from a bank 9. Issued shares of stock to pay short term loan 10. Collection of receivables 11. Cash redemption of bonded debt 12. Six months interest received in advance(liability method is used) 13. Issued stock dividends 14. Payment of cash dividends declared in #6 15. Sell of equipment for P50,000;…
Can you please give me true answer the accounting question?
Starry Company purchased equipment by borrowing money from a bank for $50,000. Which of the following would reflect this transaction? a. It would decrease liabilities by $50,000 b. It would decrease retained earnings by $50,000 c. It would increase assets by $50,000 d. It would decrease cash by $50,000
Answer this question correctly and accurately.
Yokum Company had the following transactions for 20X1. o Payments of dividends - $11,250 o Depreciation expense - $22,500 o Income taxes paid - $27,000 o Proceeds received from sale of equipment - $225,000 o Utilities paid - $6,750 o Interest paid on note to local bank - $5,625 o Proceeds from issuance of common stock - $56,250 o Collections on accounts receivable - $337,500 o Payments on inventory - $168,750 o Payments for wages and salaries - $78,750 Using the transactions above, compute the net cash flow from operating activities. negative $523,125 Opositive $225,000 positive $523,125 negative $225,000 O negative $50,625 positive $50,625
The Tom Smith Corporation has the following items: Cash, $5,000; Machinery, $50,000; Building, $150,000; Note payable bank, $10,000; Savings, $10,000; Long-term debt, $50,000; Accounts payable, $30,000; Taxes payable, $5,000; Accounts receivable, $30,000; Inventory, $10,000; Depreciation Building, $35,000; Depreciation Machinery, $25,000; Land $50,000. Fixed assets for this Corporation are $45,000. $55,000. $95,000. $155,000. $190,000.

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