What effect this transaction have on accounting equation

Assignment Help Accounting Basics
Reference no: EM133185564

Question - Marvin Company negotiated the purchase of a new building for $395,000. Marvin paid a $160,000 cash down payment and will pay off the remainder over 7 years. What effect does this transaction have on the accounting equation?

a. $160,000 net increase in assets and $160,000 increase in liabilities

b. $160,000 net decrease in assets and $235,000 decrease in liabilities

c. $235,000 net increase in assets and $235,000 increase in liabilities

d. $395,000 net increase in assets and $235,000 increase in liabilities

Reference no: EM133185564

Questions Cloud

What is Jack and Jill total stockholders equity : Jack and Jill Corporation's year-end 2018 balance sheet lists current assets of $259,000, What is Jack and Jill total stockholders equity
Determine liabilities using the accounting equation : The assets and owner's equity of a company are $210,000 and $55,000, respectively. Determine liabilities using the accounting equation
What total amount should be recognized as share premium : ABC Company was organized on January 1, 2022 with 100,000 authorized shares of P100 par value. What total amount should be recognized as share premium
What is the predicted value of y : The estimated model is as follows: Y = 0.08+ 2X. What is the predicted value of y when the value of X = 0.23
What effect this transaction have on accounting equation : Marvin paid a $160,000 cash down payment and will pay off the remainder over 7 years. What effect does this transaction have on the accounting equation
What is the effect on the money supply : Suppose $3.75 million in new excess reserves appear in the banking system. What is the effect on the money supply
Compute evelyn company weighted average cost of capital : Question - Evelyn Company supplies refrigeration equipment to hotels in the Caribbean. Compute Evelyn Company weighted average cost of capital
Compute the theoretical velocity in units per hour : Marshal Company has the following data for one of its manufacturing plants: Compute the theoretical velocity in units per hour
How many years will it take to repay the loan : Dolly has a mortgage on her house with a balance of $3,000,000 and the APR on the loan is 4%. How many years will it take to repay the loan

Reviews

Write a Review

Accounting Basics Questions & Answers

  What do people actually order at chipotle

What do people actually order at Chipotle? How healthy is a normal Chipotle meal? Chipotle and other relatively new fast casual chains like Shake Shack

  What is carmel average investment

Carmel Corporation is considering the purchase of a machine costing $38,000 with a 4-year useful life, What is Carmel average investment

  What earnings per share data should be reported

After a loss from discontinued operations of $42,700 (net of tax). What earnings per share data should be reported at the bottom of its income statement

  How much of charlotte costs can be deducted

Charlotte traveled to Annapolis to attend a three-day business conference. After her meetings concluded, she stays 2 additional days sightseeing.

  How much money will the client have for new car

How much money will the client have for her new car after paying off the old one assuming that all payments and compounding occurred on a monthly basis?

  Write a memo summarizing your analysis and recommendation

Write a one- to two-page memo (double space) summarizing your analysis and recommendation, along with the basis for that recommendation.

  Calculate the Richlieu profit margin

During 2018, Richlieu Corporation reported: Net sales $30,000,000 and Net income 1,500,000. Calculate the Richlieu's profit margin

  Determine the size of the annual deposits

The account is expected to earn 5% per annum for the entire period of time. Determine the size of the annual deposits that must be made by Kate

  How to do the journal entry for this one

Question - Triple-A used mica powder worth 30,000 in the month of September from Mica Corporation. How to do the journal entry for this one

  What is the maximum price you can pay for the car

If the APR on auto loans is 9% and you finance the purchase over 36 months, what is the maximum price you can pay for the car

  Prepared the income statement for abc company

Prepared the income statement for ABC company.consulting revenue 550,000. rental revenue 500,000. salaries expense 200,000

  What is the cost of marginal bad debts under proposed plan

The firm's required return on investment is 20 percent. (Assume a 360-day year). What is the cost of marginal bad debts under the proposed plan

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd