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Lady bird [3.3K]
3 years ago
9

Juan Foods pays off a long-term debt in full. Which one of the following statements best describes the appropriate book-keeping

for this transaction?
a. Debit cash; credit long-term debt
b. Debit long-term debt; credit owners' equity
c. Debit owners' equity; credit long-term debt
d. Debit long-term debt; credit cash
Business
1 answer:
tankabanditka [31]3 years ago
7 0

Answer:

Debit long-term debt; Credit cash.

Explanation:

The Journal Entry is shown below:-

Long term Dr, XXXXXXXX

To Cash

(being long term is recorded)

Long-term debt is a liability which usually has a credit balance. Therefore, until the long-term debt is entirely repaid, the long-term debt account has to be debited to pay it off entirely from the account books. In another hand, the cash account has to be paid, because there is a cash outflow.

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Answer:

1. Lower the interest rates in the economy.

2. Increase asset prices

Explanation:

Remember, increase in money supply looks at the total money made available in circulation in an economy. Alternatively it is called liquidation.

The real of an economy takes into consideration the impact of inflation on the value of goods and services produced in an economy.

Therefore lower interest rates as a result of increase in money supply would results in more consumption and borrowing.

While the price of houses, stocks would rise because of the increased money supply.

4 0
2 years ago
All of the following would be listed as surplus items on the U.S. balance of payments international accounts except
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Answer:

The correct answer is B: U.S.​ tourists' expenditures in foreign countries.

Explanation:

To be listed as a surplus in the U.S. balance of payments, it needs to be an entry of money to the economy. The option B is the only one that does not meet the requirements. U.S.​ tourists' expenditures in foreign countries mean an exist of money to other countries.

7 0
3 years ago
Your sister is thinking about starting a new business. The company would require $380,000 of assets, and it would be financed en
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Answer:

$51,300

Explanation:

Given that,

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Note: Since, all of the total assets are financed by the common stock.

5 0
2 years ago
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Answer:

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3 years ago
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8 0
2 years ago
Read 2 more answers
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