Palmer Corporation borrows $40,000 cash by signing a note with the bank. Which of the following statements correctly shows the effect of this transaction on the accounting equation? Multiple Choice
A. Assets will increase by $40,000, liabilities will increase by $40,000, and stockholders' equity will remain unchanged
B. Assets will increase by $40,000, liabilities will decrease by $40,000, and stockholders' equity will remain unchanged
C. Assets will increase by $40,000, liabilities will remain unchanged, and stockholders' equity will increase by $40,000
D. Assets will increase by $40,000, liabilities will remain unchanged, and stockholders' equity will decrease by $40,000
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Palmer Corporation borrows $40,000 cash by signing a note with the bank. Which of the following statements correctly shows the effect of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
A condensed income statement by product line for British Beverage Inc. indicated the following for King Cola for the past year: Sales $235,100 Cost of goods sold (110,000) Gross profit $125,100 Operating expenses (142,000) Operating loss $ (16,900)
Answers (1)
Which of the following ratios would not generally be used to look for inventory and cost of goods sold related frauds? A. Accounts payable turnover B. Gross profit margin C. Inventory turnover D. Number of days' sales in inventory
Answers (1)
Four hundred and eighty minutes of production time are available per day. The schedule calls for the production of 80 units per day. Each unit of the product requires 30 minutes of work. What is the theoretical minimum number of workstations?
Answers (1)
Journalize the following transactions in the accounts of Sedona Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables: May 1. Sold merchandise on account to Beijing Palace Co.
Answers (1)
George is an employee at a company that provides information technology solutions to other firms. Recognizing his potential to innovate, the top management of the company has given him the complete liberty to develop a new smart phone application
Answers (1)
New Questions in Business
Quarrels among business associates have become common. The associates quarrel over what products the firm should sell, division of authority, selection of personnel, whether to bring family members into the business, whether to expand, and who is
Answers (1)
Kroger Supermarkets changes its ads constantly to describe new products it has for sale and different price specials it offers.
Answers (1)
Selected accounts with amounts omitted are as follows: Work in Process Aug. 1 Balance 271,240 Aug. 31 Goods finished 190,490 31 Direct materials X 31 Direct labor 32,700 31 Factory overhead X Factory Overhead Aug. 1 - 31 Costs incurred 112,690 Aug.
Answers (1)
Which of the following is true of customers who are regarded as ""promoters"" based on the net promoter score associated with these customers? A. They spread negative comments about the organization. B. They usually defect at higher rates. C.
Answers (1)
Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $36,000 and $24,000, respectively.
Answers (1)