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NeTakaya
3 years ago
14

Foster, Inc., purchased a truck by paying $5,000 and borrowing the remaining $30,000 required to complete the transaction. Ident

ify the correct statement(s) based on the transaction.
a. The Company's liabilities will increase by $25,000.
b. The Company's liabilities will decrease by $30,000.
c. Foster Inc.'s assets will decrease by a net amount of $30,000.
d. The Company's liabilities will increase by $30,000.
e. Foster Inc.'s assets will increase by a net amount of $30,000.
f. Foster Inc.'s assets will decrease by a net amount of $25,000.
Business
1 answer:
neonofarm [45]3 years ago
6 0

Answer: c. Foster Inc.'s assets will decrease by a net amount of $30,000.

d. The Company's liabilities will increase by $30,000.

Explanation:

From the question, Foster, Inc., bought a truck by paying $5,000 and then borrowed the remaining $30,000 that was required to complete the transaction.

Since the company borrowed $30,000, this will lead to an increase in the liability of the company by $30,000. Also, it will lead to a reduction in the net assets of the company by a net amount of $30,000

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vovikov84 [41]

Jasper's entry to record the collection of the note and interest at maturity should be:

Debit     Cash Account 44,990

Credit    Interest Income $990

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The amount collected is:

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And

Interest Income

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Now putting the interest income value in the above equation, we have:

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Learn more about Journal entry here: brainly.com/question/14972126

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2 years ago
At a nominal interest rate of i i convertible semiannually, an investment of 1,000 immediately and 1,500 at the end of the first
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Assuming Digby’s current market share for its Drat product remains the same, how many units of Drat should Digby expect to sell
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Available Options Are:

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Explanation:

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Now we will look at whether the company has taken advantage of its second largest accessibility position or not. This can be seen in Actual Vs Potential Market Share table. The units produced were sold in the year which means that the accessibility of the product is even more than its rivals as the market share captured in the year by Digby is above 40%. This means that their is an increased demand for Digby's Product. This can also be seen by segment growth rate in the Elite Statistics (Top Left Corner) which is anticipated to be at 16%.

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