Rush Corporation borrowed $25,000 from the bank. Which of the following accurately shows the effects of the transaction? a. Increase cash by $25,000 and decrease notes payable by $25,000. b. Increase cash by $25,000 and increase notes payable by $25,000. c. Decrease cash by $25,000 and decrease notes payable by $25,000. d. Decrease cash by $25,000 and increase notes payable by $25,000.
Rush Corporation borrowed $25,000 from the bank. Which of the following accurately shows the effects of the transaction? a. Increase cash by $25,000 and decrease notes payable by $25,000. b. Increase cash by $25,000 and increase notes payable by $25,000. c. Decrease cash by $25,000 and decrease notes payable by $25,000. d. Decrease cash by $25,000 and increase notes payable by $25,000.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter5: Internal Control And Cash
Section: Chapter Questions
Problem 2SEQ
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Transcribed Image Text:Rush Corporation borrowed $25,000 from the bank. Which
of the following accurately shows the effects of the
transaction?
a. Increase cash by $25,000 and decrease notes payable by
$25,000.
b. Increase cash by $25,000 and increase notes payable by
$25,000.
c. Decrease cash by $25,000 and decrease notes payable by
$25,000.
d. Decrease cash by $25,000 and increase notes payable by
$25,000.
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