Simpson Auto Body Repair purchased $19,460 of Machinery. The company paid $3,959 in cash at the time of the purchase and the remainder was purchased on account to be paid in four monthly installments. a. How will the purchase affect the accounting equation? liabilities by $ v total assets by a net amount of $ and b. How will the payment of the first monthly installment affect the accounting equation (ignore interest)? v liabilities by $ v assets by $ and
Simpson Auto Body Repair purchased $19,460 of Machinery. The company paid $3,959 in cash at the time of the purchase and the remainder was purchased on account to be paid in four monthly installments. a. How will the purchase affect the accounting equation? liabilities by $ v total assets by a net amount of $ and b. How will the payment of the first monthly installment affect the accounting equation (ignore interest)? v liabilities by $ v assets by $ and
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Simpson Auto Body Repair purchased $19,460 of Machinery. The company paid $3,959 in cash at the time of the purchase and the remainder was purchased on account to be
paid in four monthly installments.
a. How will the purchase affect the accounting equation?
liabilities by $
v total assets by a net amount of $
and
b. How will the payment of the first monthly installment affect the accounting equation (ignore interest)?
v liabilities by $
v assets by $
and
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