Homework Help Question & Answers

Question Help Thorpe Corporation purchases a new delivery truck and signs a note payable at the...

Question Help Thorpe Corporation purchases a new delivery truck and signs a note payable at the truck dealership for the tota

Question Help Thorpe Corporation purchases a new delivery truck and signs a note payable at the truck dealership for the total cost. The impact of this transaction on Thorpe Corporation O A. increases assets and increases stockholders' equity. OB. increases assets and increases liabilities. O C. decreases assets and increases liabilities. OD. increases assets and decreases stockholders' equity.
0 0
Next > < Previous
ReportAnswer #1

The Answer is :-

B. Increase Assets and Increases Liabilities.

Example :-

New Delivery Truck Purchase at $100000

Payment of Truck Purchase through Note Payable.

Journal Entry :-

Particulars Debit($) Credit($)
a) Truck A/c (Assets) 100000
Note Payable A/c (Liabilities) 100000
(Being Record Purchase of New Delivery Truck Against Note Payable)

"Please Rate The Answer"

Know the answer?
Add Answer to:
Question Help Thorpe Corporation purchases a new delivery truck and signs a note payable at the...
Your Answer: Your Name: What's your source?
Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Blake Company completed a consulting job and billed the customer $5,000. The impact on Blake Company...

    Blake Company completed a consulting job and billed the customer $5,000. The impact on Blake Company from this transaction A. increases liabilities and decreases stockholders' equity OB. decreases liabilities and increases stockholders' equity O C. increases assets and increases stockholders' equity. OD. increases assets and increases liabilities.

  • Blue Spruce Corp. purchased equipment for $4900, paying cash of $6100 and signing a note payable...

    Blue Spruce Corp. purchased equipment for $4900, paying cash of $6100 and signing a note payable for the balance due. This transaction increases assets, liabilities and stockholder's equity. O increases assets and liabilities; decreases stockholders' equity. increases assets and liabilities. O has no effect on the basic accounting equation.

  • A company incurred the following costs for a new delivery truck: Purchase price Sales tax Delivery...

    A company incurred the following costs for a new delivery truck: Purchase price Sales tax Delivery charge from seller's location Special racks for storage Normal repairs to the truck before it was used for the first time Signs painted on the truck Insurance on truck before it was used for the first time What is the cost of the delivery truck? $120,000 7,200 1,500 3,000 1,100 2,000 3,000 O A. $128,700 OB. $130,700 O c. $133,700 OD. $137,800

  • Question 21 Blossom Company purchases a new delivery truck for $45000. The sales taxes are $2000....

    Question 21 Blossom Company purchases a new delivery truck for $45000. The sales taxes are $2000. The logo of the company is painted on the side of the truck for $1000. The truck's annual license is $100. The truck undergoes safety testing for $210. What does Blossom record as the cost of the new truck? $48310. 48210 $47000 $46210 Click If you would like to show Work for this question: Open Show. Work

  • Cash Equipment Accounts payable Delivery expense Salaries expense $ 1,300 Service revenue 24,000 Cost of goods...

    Cash Equipment Accounts payable Delivery expense Salaries expense $ 1,300 Service revenue 24,000 Cost of goods sold (food expense) 3,400 Buildings 1,600 Supplies 4,500 Salaries payable $ 62,700 52,400 30,000 2,400 900 In addition, the company had common stock of $30,000 at the beginning of the year and issued an additional $3,000 during the year. The company also had retained earnings of $16,200 at the beginning of the year. Required: 1. Prepare the income statement for Longhorn Corporation. 2. Prepare...

  • Can you answer that for me and explain why? 26. A corporation purchases land for $200,000...

    Can you answer that for me and explain why? 26. A corporation purchases land for $200,000 by paying a down payment of $20,000 and by signing a note payable for the remainder of the purchase price. Which of the following statements correctly shows the effect of this transaction on the accounting equation? Assets will increase by $200,000; liabilities will increase by $180,000 and stockholders' equity will increase by $20,000. Assets will increase by $180,000; liabilities will increase by $200,000 and...

  • Cash Equipment Accounts payable Delivery expense Salaries expense $ 1,200 Service revenue 29,000 Cost of goods...

    Cash Equipment Accounts payable Delivery expense Salaries expense $ 1,200 Service revenue 29,000 Cost of goods sold (food expense) 4,400 Buildings 2,600 Supplies 5,500 Salaries payable $67,700 53,400 40.000 3,400 800 In addition, the company had common stock of $40,000 at the beginning of the year and issued an additional $4,000 during the year. The company also had retained earnings of $18,200 at the beginning of the year. Required: 1. Prepare the income statement for Longhorn Corporation. 2. Prepare the...

  • Ivanhoe Corporation operates a retail computer store. To improve delivery services to customers, the company purchases...

    Ivanhoe Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2020. The terms of acquisition for each truck are described below. Truck #2 has a list price of $39,200 and is acquired for a down payment of $4,900 cash and a zero-interest-bearing note with a face amount of $34,300. The note is due April 1, 2021. Ivanhoe would normally have to pay interest at a rate of 9%...

  • Longhorn corporation provides low cost food delivery services to senior citizens at the end of the...

    Longhorn corporation provides low cost food delivery services to senior citizens at the end of the year on December 31, 2021 the company reports the following amounts 68,200 https://newconnect.mheducation.com/flow/connect.htmi Longhorn Corporation provides low-cost food delivery services to senior citizens. At the end company reports the following amounts: $ 1,400 Service revenue 23,500 Cost of goods sold (food expense) 53,500 points Equirmemt Accountsg pavable 29,000 2,700 Supplies 5,600 Salaries payable 2. $68,200 Cash 3,300 Buildings 2,300 700 Delivery expense Salaries expense...

  • Problem #2: Installment Note Preferred Corporation purchases an asset and finances it with a note payable....

    Problem #2: Installment Note Preferred Corporation purchases an asset and finances it with a note payable. Information regarding the transaction follows: 106,000 106,000 Cost of asset Amount Financed Annual Interest Rate Installment loan term Payments are made 2 years 12 times per year 9.) What is the total amount of interest that will be paid on the note payable over the two year period? » What is the total amount of Interest that will be paid on the nato payable...

Free Homework App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.