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inn [45]
4 years ago
10

Issuing a note payable for cash results in a(n) ______. a. increase in liabilities and a decrease in stockholders' equity b. inc

rease in assets and an increase in liabilities c. decrease in assets and an increase in liabilities d. decrease in assets and a decrease liabilities
Business
1 answer:
jeyben [28]4 years ago
7 0

Answer:

(B) increase in assets and an increase in liabilities

Explanation:

Issuing a note (assumed to be a short term note with a maturity of no more than a year in this case) means a company is borrowing from a market/investor(s).

Accordingly, the journal entry for a note issuance is as follows.

Debit Cash (for the proceeds of the note issuance. This increases assets),

Credit Debt Notes (this increases liabilities).

Thus issuing a note results in an increase in assets and an increase in liabilities.

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Liabilities are shown on the:__________a. statement of changes in stockholders' equity.b. balance sheet.c. income statement.d. s
Zarrin [17]

Answer:

. balance sheet.

Explanation:

Liabilities are debts a business or an individual owe to other parties. It is money owed to creditors.  Liabilities are financial obligations that an enterprise incur in the course of doing business. The obligations or debts have to been paid; hence they should be appropriately indicated in the financial records.

Liabilities are recorded in the balance sheet statement. A balance sheet indicates the financial status of a company by showing its assets and how they are financed. The balance sheet is prepared by followed the equation of assets equals liabilities plus equity.  It lists the assets on one right side,  while liabilities and equity appear on the left.

5 0
3 years ago
Brody Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion cos
Iteru [2.4K]

Answer:

Equivalent units for conversion cost is 10,790 units

Explanation:

Completed and Transferred (1,030 + 10,000 - 400) x 100 % = 10,630

Ending Work In Process 400 x 40%                                         =     160

Total  equivalent units for conversion cost                              = 10,790

3 0
3 years ago
Pre-hearing briefs: a. Are nearly always used in arbitration. b. Might backfire for the presenting party. c. Often preferred by
Simora [160]

Answer:

The correct answer is letter "B": Might backfire for the presenting party.

Explanation:

Arbitrations are agreements made between two parties in dispute in front of a third party called the <em>arbitrator </em>avoiding to take the caser to court. The arbitrator has the power to come up with a neutral decision of the case if the parties cannot resolve the issue under their own terms.  

<em>Some arbitrations are requested to have pre-hearings when both parties are backfired because they might be requested to expose their positions even to bring witnesses to find out if there are inconsistencies.</em>

3 0
3 years ago
Marwick Corporation issues 15%, 5 year bonds with a par value of $1,070,000 and semiannual interest payments. On the issue date,
Over [174]

Answer:

The bond's issue (selling) price = $1,146,890.2

Explanation:

The selling price of the bond is equivalent to the present value of all the cash flows that are likely to accrue to an investor once the bond is bought. These cash-flows are the periodic coupon payments that are paid semi anually and the par value of the bond that will be paid at the end of the 10 years.

During the 5 years, there are 10 equal periodic coupon payments that will be made. In each  year, the total coupon paid will be $1,070,000*0.15=$160,500 and this payment will be split into two equal payments equal to  \frac{160,500}{2}=$80,250. this stream of cashflows is an ordinary annuity

The periodic annual market rate is equal to \frac{0.13}{2}=0.065

The  PV of the cashflows = PV of the coupon payments + PV of the par value of the bond

=$80,250*PV Annuity Factor for 10 years at 6.5% + \$1,070,000*\frac{1}{(1+0.065)^10}

=$80,250*7.1888+$1,070,000*0.5327 = $1,146,890.2

7 0
3 years ago
How would you reconcile your bank account to avoid spending more than you have
ElenaW [278]

Answer:

Your account will be placed on a fixed deposit whereby no transaction occurs until particular set periods.

Explanation:

8 0
3 years ago
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