Savings account is the answer
Answer:
d.$7,091 increase
Explanation:
From the accounting equation, assets = liabilities + equity. If the total liabilities decrease by $27,275, the assets will also decrease by $27,275. Similarly, when stockholders' equity increased by $34,366, the amount of assets will increase by the same amount. The net increase in assets will be $7,091, which is the difference between the increase in stockholders' equity and the decrease in liabilities ($34,366 - $27,275).
As prepaid rent is used, the asset becomes a liability.
Liability because it becomes the responsibility of someone who uses the prepaid. Since the prepaid rent was used, it needs money to be able to pay them. It becomes the responsibility for someone to be able to use his money to pay the prepaid rent that was used.
Answer:
The US District Court ruled that this case must be served by a court in Tennessee because:
- Allison was injured while working in Tennessee
- The place where Allison got involved with the defendant is Tennessee, so their relationship took place there.
If the lawsuit had been for a higher amount (at least $75,000), then the case could have been tried by a federal court.
Answer:
Cash A/c Dr $15,000
To Notes payable A/c $15,000
(Being the bank borrowing through a note payable is recorded)
Explanation:
The journal entry is shown below:
Cash A/c Dr $15,000
To Notes payable A/c $15,000
(Being the bank borrowing through a note payable is recorded)
This transaction increases the cash balance so the cash account should be debited and the note payable account should be credited as it creates a liability which is to be reflected in the balance sheet
