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Jet001 [13]
3 years ago
7

A company borrowed $500,000 cash from a bank and used it to purchase $500,000 of new manufacturing equipment. Which of the follo

wing items would be increased by the bank loan and equipment purchase transactions?(check all that apply) A. Total Assets B. Inventory C. Cash from Financing D. Cash from Investing E. Notes Payable
Business
1 answer:
bogdanovich [222]3 years ago
5 0

Answer:

Lets see what are the double entries of borrowings and purchase of new  manufacturing equipment and their implications:

Double Entry for borrowings:

Dr Bank $500,000

Cr           Notes Payable $500,000

The above double entry shows that the total assets and Notes Payable are increased due to this transaction. Furthermore, in the Statement of Cash flow we see an increase in Cash from Financing activities and decrease in the Cash from investing activities.

The second transaction is purchase of new manufacturing equipment. It must be accounted for as under:

Dr Manufacturing Equipment $500,000

Cr                                               Bank    $500,000        

This transaction shows that net impact on the total assets is same as one asset has been increased by spending the other asset. This transaction also has no impact on Cash for financing, inventories and notes payable balances. However, their is increased negative balance in cash from investing activities.

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3 years ago
if the natural rate of unemployment is 5%, what is the total rate of unemployment if output is 2% below potencial output?
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4 0
2 years ago
The Xu Corporation uses a periodic inventory system. The company has a beginning inventory of 300 units at $5 each on January 1.
bogdanovich [222]

Answer:

Cost of goods sold is d. $1,600

Explanation:

The LIFO is a method used to account value for inventory. Under the method, the last item of inventory purchased is the first one sold.

1. January 1,  Inventory 300 units, $5 per unit. Total $1,500

2. Purchasing:

In February, 500 units, $4 per unit. Total $2,000

In March,  200 units, $6 per unit. Total $1,200

The Xu Corporation uses a periodic inventory system and sells 300 units during the quarter.

Cost of goods sold = 200 x $6 + 100 x $4 = $1,200 + $400 = $1,600

3 0
3 years ago
What is the difference between net worth and worth​
notka56 [123]

Answer:

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Hope this helps, have a great day/night and stay safe! :) :D :3

7 0
2 years ago
All of the following are correct about what managers should know about firms based in a country with a national competitive adva
elena-s [515]

Answer: c. Success is guaranteed as the firm implements its chosen international business-level strategy.

Explanation:

Firms that have a hold on national competitive advantage have to consider that which favours the market they operate in within where they are based in carrying out their decision or policies considering their business. It would be unprofitable when the firm chooses it's policies for success based an international business level strategy as this may seems to fail. Strategies that should be considered are those that focuses on what impact it would play in the market of the nation.

6 0
3 years ago
Read 2 more answers
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