Al dunn bakery bought a new oven for $1,380. al paid $300 as a cash down payment and will pay the balance in 30 days. total assets increased by $1,080. true or false

a. True

b. False

Question

Business

Beard

23 September, 13:15

Al dunn bakery bought a new oven for $1,380. al paid $300 as a cash down payment and will pay the balance in 30 days. total assets increased by $1,080. true or false

a. True

b. False

+5

Answers (1)

Know the Answer?

Draven Edwards · Answer 1

The answer would be true. If we are going to journal this entry, we will have:

debit

equipment 1380

credit

accounts payable 1080

cash 300

We received an equipment worth 1380. Since equipment is considered as asset, it will increase but our cash was an asset too, so it means that our asset decreased. So 1380 - 300 = 1080. So a total of 1080 is the increase.

Al dunn bakery bought a new oven for $1,380. al paid $300 as a cash down payment and will pay the balance in 30 days. total assets increased by $1,080. true or falsea. Trueb. False

Al dunn bakery bought a new oven for $1,380. al paid $300 as a cash down payment and will pay the balance in 30 days. total assets increased by $1,080. true or false

a. True

b. False