Reference no: EM132768508
Questions -
Q1. What is the proper way to record a decrease in an asset account and a decrease in a liability account?
A. Asset, debit liability, credit
B. Asset, credit liability, credit
C. Asset, debit; liability, debit
D. Asset, credit liability, debit
Q2. On January 1, a company has total assets of $700,000, total liabilities of $500,000, and total equity of $200,000. On January 1, the company entered into the following two transactions.
Purchasing goods for resale total cost of this inventory was $50,000; the company paid $10,000 cash and the remainder was put on the company's credit accounts with its suppliers.
Selling land for cash; the original cost of the land was $100,000; the land was sold for $80,000.
After these two transactions, what is this company's total assets?
A. $850,000
B. $830,000
C. $720,000
D. $740,000