Question

ndow Help 39% D Wed 7:26 Dsa Student Grades for Janaina Fernando: 6192-ACCT-2301-Prin of Financial Acc Help Save&Exit Submit MC Qu. 194 Billington Corp. borrows... Bilington Corp. borrows $80,000 cash from Second National Bank. How does this transaction affect the accounting equation for Billington? Multiple Choice Assets would decrease $80,000 and sabilities would decrease $80,000 Assets would decrease $80,000 and equity would increase $80.00o. Assets would increase 180,000 and equity would decrease $80,000 Assets would increase $80.000 and labilbes would increase $80.000 < Prev 3 of 10 Next 4 5 6 8

Answer 1

Ans-The correct option is d)-Assets would increase $80,000 and liabilities would increase $80,000

Explanation:-

As Billington Corporation borrows $80,000 cash from Second National Bank :-

the entry will be pass:

Cash A/c Dr. $80,000

To Second National Bank $80,000

there cash is asset as Billington borrows $80,000 the cash will be received and shows in assets. In the same way Second National Bank is creditor and will be shown in liabilities side.