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Hand-me-Down Clothing Company was recently formed with a $5,000 investment in the compeny by shareholders. The company then borrowed $2,000 from a local bank, purchased $1,000 of supplies inventory on account, and also purchased $5,000 of equipment by paying $2.000 in cash and signing a promissory note for the balance. As a result of these transactions, the company's total assets are: Multiple Choice $10,000 $11,000 $9,000

Hand-me-Down Clothing Company was recently formed with a $5,000 investment in the compeny by shareholders. The company then borrowed $2,000 from a local bank, purchased $1,000 of supplies inventory on account, and also purchased $5,000 of equipment by paying $2.000 in cash and signing a promissory note for the balance. As a result of these transactions, the company's total assets are: Multiple Choice $10,000 $11,000 $9,000

FINANCIAL ACCOUNTING
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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Hand-me-Down Clothing Company was recently formed with a $5,000 investment in the compeny by shareholders. The company then borrowed $2,000 from a local bank, purchased $1,000 of supplies inventory on account, and also purchased $5,000 of equipment by paying $2.000 in cash and signing a promissory note for the balance. As a result of these transactions, the company's total assets are: Multiple Choice $10,000 $11,000 $9,000
Transcribed Image Text:Hand-me-Down Clothing Company was recently formed with a $5,000 investment in the compeny by shareholders. The company then borrowed $2,000 from a local bank, purchased $1,000 of supplies inventory on account, and also purchased $5,000 of equipment by paying $2.000 in cash and signing a promissory note for the balance. As a result of these transactions, the company's total assets are: Multiple Choice $10,000 $11,000 $9,000
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