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The answer is no change in total assets
The reason here is
One asset i.e equipment is increasing by the amount $8,000 and the
Other asset i.e cash is decreasing by the same amount i.e $8,000
Hence there is no change in total assets
A small company near loop 410 pays $8,000 cash for some new equipment. The effect is...
Sunfish & Company collected $8,000 from an outstanding account receivable. What would be the effect of this transaction on the accounting equation? Select one: A. Assets Liabilities Shareholders' Equity No Effect No Effect No Effect B. Assets Liabilities Shareholders' Equity Increase $8,000 No Effect Increase $8,000 C. Assets Liabilities Shareholders' Equity Decrease $8,000 Decrease $8,000 No Effect D. Assets Liabilities Shareholders' Equity Increase $8,000 Decrease $8,000 No Effect
If a company uses $1,300 of its cash for Equipment, the effect on the accounting equation would be Assets decrease $1.500 and equity decreases $1,300. DA Assets increase $1,300 and liabilities decrease $1,300 B. Assets increase $1,300 and liabilities increase $1,300 One asset increases $1,300 and another asset decreases $1,300, causing no effect ving to another question will save this response.
Sheridan Company purchases $1380 of equipment from Monty Inc. for cash. The effect on the components of the basic accounting equation of Sheridan Company is an increase in assets and a decrease in liabilities. no change in total assets. a decrease in assets and liabilities. an increase in assets and liabilities. Save for Later EL Attempts: 0 of 1 used Submit Answer 3,3 Up next BO # N 2 % 5 3 4 6 Q W E tab R
$10,000 cash is deposited into the business bank account in exchange for common stock. The effect is to increase one asset, decrease another asset increase assets, decrease stockholder's equity increase assets, increase stockholder's equity. decrease assets, increase liabilities
if a company uses $ 1,340 of it's cash to purchase supplies, the effect on the account equation would be? assets increase $1,340 and liabilities decrease $1340 one asset increases $1340 and another asset decreases $1340, causing no effect assets decrease $1340 and equity decreases $1340 assets decrease $1340 and equity increases $1340 assets increase $1340 and liabilities increase $1340
1. Which of the following is something of value owned by the company? (a)Cash (b) Common Stock (c) Supplies Expense (d) Notes Payable 2. Windward Inc. makes a payment of $500 on its accounts payable. How does this effect the accounting equation? a. Assets decrease and Liabilities decrease b. Assets increase and Equity Decreases c. Assets decrease and Equity decreases d. Assets increase and Liabilities increase e. Assets decrease and Liabilities increase 3. Chitron Corporation earns $750 working for a...
If a company purchases equipment costing $5,100 on credit, the effect on the accounting equation would be: med Multiple Choice 0 Equity increases $5,100 and liabilities decrease $5,100. SU KI Assets increase $5,100 and liabilities increase $5,100. 0 d liabilities increase he n 0 Equity decreases $5,100 and liabilities increase $5,100. 55.10 es re Assets increase $5,100 and liabilities decrease $5,100. S0 0 See 0 Liabilities decrease $5,100 and assets increase $5,100.
When a company issues common stock for cash, what is the effect on the accounting equation for the company? Select one: a. Assets increase and liabilities increase. O b. Liabilities decrease and stockholders' equity increases. O C. Assets increase and stockholders' equity increases. O d. Assets decrease and liabilities decrease. Jump to... • How Accounting Systems Work (B. il auto.proctoru.com is sharing your screen. Stop sharing Hide
Debit Company Adjusted Trial Balance December 31, 20X7 Cash $6,500 Accounts receivable 8,000 Supplies 1,000 Prepaid Rent (3 months) 2,500 Equipment, net 42,000 Accounts payable Salary payable Unearned revenue (2 month advance) Note payable - long term Common stock Retained earnings Dividends 4,000 Service revenue Salary expense 40,000 Rent expense 10,000 Supplies expense 1,500 Depreciation expense 5,000 Utilities expense 1,200 $4,000 2,000 2,000 14,000 10,000 14,700 75,000 Total $121,700 $121.700 *Assume 30% income tax Balance Sheet Assets Liabilities Total Liabilities...
lected transactions for Verdent Lawn Care Company are as follows. Describe the effect of each transaction on assets, liabilities, and stockholders’ equity. For example, the first answer is: Increase in assets and increase in stockholders’ equity. 1. Sold common stock for cash to start business. Increase in assets and increase in stockholders’ equity. 2. Paid monthly rent. Select an effect Increase in assets and increase in stockholders’ equityDecrease in assets and decrease in stockholders’ equityIncrease in assets and increase in...