Answer:
(B) Assets will increase by $20,000, liabilities will increase by $20,000, and stockholders' equity will remain unchanged
Explanation:
Signing a note of $20,000 with a bank to purchase an equipment will have the following double entry in the books of the borrower.
Debit Equipment (asset) account $20,000 (an increase in assets)
Credit Bank Notes (liability) account $20,000 (an increase in liabilities).
Answer:
See below
Explanation:
This transaction will affect the bank balance by increasing it with the check amount. The bank is cash (asset ) held in the bank. An increase in assets account is a debit. The bank A/c will be debited.
The check is received from Yogesh. Yogesh must have bought goods on credit and hence is an account receivable (asset). Since Yogesh has paid, his account decrease by the check amount. A decrease in assets is credited.
The journal entry will be
Bank A/c DR. Rs 4500
Yogesh A/c Cr. Rs 4500
Answer:
I'm going to say the answer is B ! I could be wrong but this is what i think :)
Explanation:
Answer:
Credit common stock by 20,000
Credit additional paid in capital by 20,000
Explanation:
The par value of the share are $10 per share the number of shares are 2000 so initially we will credit common stock by (2000*10) = 20,000
Then we will credit the additional paid in capital by (11-10)*(2,000) =2000 as it is the additional money that we are getting on the par value.
Answer:
Short run aggregate supply curve is flat ( A )
Explanation:
The special case of the AS-AD following the IS-LM is that the short run aggregate supply curve is flat
This is because in an AS-AD model the price level is constant and AD represents an equilibrium point along IS-LM model, hence the price been constant, shows that in short run aggregate supply curve will be flat.