User Account

All Pages

Which of the effects on the accounting equation is correct

Assignment Help Accounting Basics
Reference no: EM132782404

Problem 1: Suppose Mr. Chan lends P500,000 cash to the entity. At the same time, the entity uses part of the money to repay the amount owed to a creditor and holds the remaining amount of P400,000 in the bank account. Which of the following effects on the accounting equation is correct?

a. Assets increase by P400,000 and liabilities increase by P400,000.
b. Assets increase by P500,000 and liabilities increase by P500,000.
c. Assets increase by P400,000 and liabilities decrease by P500,000.
d. Assets decrease by P500,000 and liabilities increase by P400,000.

Problem 2: Refer to Problem 1, the journal entry should be:

Account(s) to be debited            Account(s) to be credited

a. Cash, P500,000                          Accounts payable, P900,000

Bank, P400,000

b. Cash, P100,000                            Loan from Mr. Chan, P500,000

Bank, P400,000

c. Cash, P400,000                                    Bank, P500,000

Accounts payable, P100,000

d. Accounts payable, P100,000                          Loan from Mr. Chan, P500,000

Bank, P400,000

Reference no: EM132782404

Questions Cloud

How do the accounts of the yugoslav wars present in judt : How do the accounts of the Yugoslav wars present in Judt and Judah fit into the historiographic debate present in Lampe et all? In your paper you should.
Determine the range over each alternative would be best : The probability that demand will be high is estimated to be .60, etermine the range over each alternative would be best in terms of the value of p
Briefly describe the history of nafta : Briefly describe the history of NAFTA (North American Free Trade Agreement) and the policies it called for. What's good about NAFTA? What's bad about NAFTA?
Discuss the influence of cultural aspects of the movement : This unit introduces three religious-based reform movements: Protestantism in mainland Europe, Protestantism in England, and the Catholic Counter-Reformation.
Which of the effects on the accounting equation is correct : Which of the effects on the accounting equation is correct? Suppose Mr. Chan lends P500,000 cash to the entity. At the same time, the entity uses part
What are the purposes of the law codes : Compare and contrast the two law codes listed below. What are the purposes of these codes and whom do they seek to regulate? How do these codes express a theory
Business research design and methodology : Business Research Design and Methodology - Report on Research Design and Methodology - state how you would collate and interpret your data.
What is bond and characteristic of bond : What is the similarity and differences between investment and gambling? What is bond and characteristic of bond
Abuse of illegal drugs and other substances : Abuse of illegal drugs and other substances (such as alcohol) can have negative effects on people's central nervous systems.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Youngest room specially for infants newborn

The first room will be our youngest room specially for infants newborn to 1 year old. As the infants enter room there will be bright colored walls to grab their attention. There will also be wind chimes hanging from the ceiling. This would be done..

  Calculate the present value of the note

Calculate the present value of the note, and make a schedule that shows the annual interest using the straight-line method of amortization

  List the names of the taxpayers

Prepare Form 1040 for the Stanleys. Taxpayers had qualifying health care coverage at all times during the tax year

  Project a and project b are mutually exclusive if project a

project a and project b are mutually exclusive. if project a has a higher internal rate of return irr than project b

  What is effective annual interest rate

Your client has just purchased a business for $200,000 and made a cash payment for 20% of the purchase price. What is effective annual interest rate

  What auditor most likely would select sample of transaction

Minimizing the failure to prepare sales invoices. The auditor most likely would select a sample of transactions from the population represented by the

  Prepare spreadsheet to determine all the pension items

The discount/interest rate is 6% for both years. Prepare spreadsheet to determine all the pension items for both 2019 and 2020

  Define deferred tax expense

The deferred tax expense is the: a. increase in balance of deferred tax asset minus the increase in balance of deferred tax liability. b. increase in balance of deferred tax liability minus the increase in balance of deferred tax asset.

  How does a portfolio canvas provide business context

Which three aspects should be monitored to improve APIs? How does a portfolio canvas provide business context? What informs whole-product thinking?

  Materiality is a concept that can be applied quantitatively

materiality is a concept that can be applied quantitatively or qualitatively. in essene it is a concept used to ensure

  Record the entry to retire the bonds

The company exercises the call option after the semiannual interest is paid on June 30, 2011, Record the entry to retire the bonds

  Deer company approaches core with a special order for 15000

core manufacturing makes a single product. budget information regarding the current period is given below revenue

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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