In May 2020, Falcon Corporation sold to Eagle Company 5 computers which Eagle paid a total of $5,000. Eagle paid $1,000 cash and promised to pay the other $4,000 in June 2021. What is the impact to the accounting equation on this transaction? Assets increased $5,000 and Stockholders' Equity increased $5,000 Assets increased $1,000, Liabilities Increased $4,000 and Stockholders' Equity decreased $3,000 Assets increased $1,000 and Stockholders' Equity increased $1,000 Assets increased $4,000, Liabilities increased $4,000

The accounting equation is known as the equation that describes the transaction in accounting form.…

Answered: In May 2020, Falcon Corporation sold to…

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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In May 2020, Falcon Corporation sold to Eagle Company 5 computers which Eagle paid a total of $5,000. Eagle paid $1,000 cash and promised to pay the other $4,000 in June 2021. What is the impact to the accounting equation on this transaction?

		Assets increased $5,000 and Stockholders' Equity increased $5,000
		Assets increased $1,000, Liabilities Increased $4,000 and Stockholders' Equity decreased $3,000
		Assets increased $1,000 and Stockholders' Equity increased $1,000
		Assets increased $4,000, Liabilities increased $4,000

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