FREE Trial

Foster, Inc. purchased a truck by paying $5,000 and borrowing the remaining $25,000 required to complete the transaction. Briefly state

Question:

Foster, Inc. purchased a truck by paying $5,000 and borrowing the remaining $25,000 required to complete the transaction. Briefly state how this transaction affects the company’s basic accounting equation.

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 46% (13 reviews)

Foster Inc s assets will increase by a net amount of 25 …View the full answer


answer-question
Answered By
tutor-profile-image
Solomon III Sison
Soji is currently a State Auditor in the National Government Sector 7 of the Commission on Audit - Regional Office No. I based in the City of San Fernando, La Union – the supreme audit institution of the Republic of the Philippines. He was a former Audit Associate of Reyes Tacandong & Co - member of the RSM Network. He joined RT&Co. in November 2014 immediately after passing the Certified Public Accountant Licensure Exam (CPALE) in October 2014. He holds a degree in Bachelor of Science in Accountancy from PHINMA University of Pangasinan and graduated Cum Laude with a GWA of 1.567. He also holds a master's degree in Business Administration from the same university. He has over six years of in-depth experience in the audit of government agencies in the field of public works, transport, and energy. He has had extensive training provided by the Commission to ensure accountability for public resources, promote transparency, and help improve government operations for the benefit of the Filipino people. As a tutor, he loves to teach his classmates during college days. He has been the go-to person of his classmates for complicated accounting problems because he can explain the concepts in simpler and more understandable terms, and also has tips and tricks to solve some problems faster. He also has experience tutoring online thru the online platform Zwerl / Sphere. He is also a lover of Mathematics. In fact, he got a numerical grade of 1.00 in his mathematics subject in college.
0.00 0 Reviews 10+ Question Solved
Related Book For  answer-question
Financial and Managerial Accounting the basis for business decisions

Financial and Managerial Accounting the basis for business decisions

ISBN: 978-0078111044

16th edition

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

See More Books
Question Details
Chapter # 2
Section: Brief Exercises
Problem: 2
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: April 17, 2014 09:33:37
See More Questions

Students also viewed these Accounting questions

Q:
Foster, Inc., purchased a truck by paying $5,000 and borrowing the remaining $30,000 required to complete the transaction. Briefly state how this transaction affects the companys basic accounting...
A:
Foster Inc s assets will increase by a net amount of......
Q:
Chopra plc purchased a truck by issuing an 80,000, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 10%. Prepare the journal entry to...
A:
Truck 80......
Q:
Ha: μ1 > μ2 The null hypothesis is H0: μ1 = μ2 and the alternative hypothesis is as specified. We have provided data from a simple random...
A:
Step 1 H 0 1 2 H a 1 2 Step 2 0 10 Step 3 The paire......
Q:
Find the total income produced by a continuous income stream in the first 2 years if the rate of flow is f(t)= 600e0.06t.
A:
f t 600e 0 06t T......
Q:
On mountainous downhill road escape routes are some-times placed to the side of the road for trucks whose brakes might fail. Assuming a constant upward slope of 32o, calculate the horizontal and...
A:
Assume a constant upward slope and so the decelerat......
Q:
What are country clusters? Pick any three clusters and discuss some of the leadership preferences for each cluster.
A:
Country clusters also known as regional clusters or geopolitical groupings are groups of countries that share certain similarities or commonalities in terms of geography culture economics politics or......
Q:
For $200,000, Jamal purchased an annuity that delivers end-of-quarter payments of $3341.74. If the undistributed funds earn 4.5% compounded quarterly, what is the term of the annuity?
A:
Given PV 200 000 PMT 3341 74 i 4 5 4 1 125 The annuity consist......
Q:
3. Perform Operations (20 marks) Write a C program to implement calculator using pointers. You should ask the user two operands and what kind of arithmetic operation the user wants to run on them....
A:
Here is a C program that implements a calculator using pointers for addition subtraction multiplicat......
Q:
Use the data in VOLAT.RAW for this exercise. (i) Confirm that Isp500 = log(sp500) and lip = log(ip) appear to contain unit roots. Use Dickey-Fuller tests with four lagged changes and do the tests...
A:
i ii iii iv v For Isp500 the ADF statistic without a trend is t 79 with a trend the t statistic is 2......
Q:
Green Company purchased a piece of machinery on credit for $10,000. Briefly state the way this transaction affects the companys basic accounting equation.
A:
Green Company s assets machinery will increase by 10......
Q:
Amber Companys assets total $150,000 and its liabilities total $85,000. What is the amount of Ambers retained earnings if its capital stock amounts to $50,000?
A:
Total assets 150000 Liabilities 85......
Q:
Each of the following independent events requires a year-end adjusting entry. Show how each event and its related adjusting entry affect the accounting equation. Assume a December 31 closing date....
A:
The Accounting Equation Total Assets Liabilities Stockholders Equity Event Adjust C......
Q:
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity...
A:
Let s calculate the requested ratios for each year and then determine if they improved or worsened o......
Q:
Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income statement follow, along with additional Information. Balance Sheet at...
A:
To prepare the statement of cash flows using the direct method we ll analyze the changes in various......
Q:
On 1 February 2022 Vujo Sithole (58 years old) created a trust for the benefit of his three children (Joyce, Thava and Rico): Joyce is 16 years old and unmarried; Thava is 20 years old and married;...
A:
To calculate the taxable income of Thava Rico Vujo and Sam as a result of the income accruals of the trust during the 2022 year of assessment we need......
Q:
Sunlux Group is a divsionalised company that has divisions in other countries but headquartered in Namibia. Due to the divisionalised nature of Sunlux, performance measurement is of crucial...
A:
1 1 Return on Investment ROI and Residual Income for 2022 and 2023 excluding new project ROI for 2022 ROI 2022 fracOperating ProfitCapital Employed 10......
Q:
A firm is considering an investment in a new product with annual revenues of $1,250,000. Variable costs of $500,000 per year. Fixed cost of $200,000 per year (fixed cost do not include depreciation)....
A:
SOLUTION To determine the annual depreciation expense we need to calculate the initial investment in......
Q:
Al-Andalus retail store in Saudi Arabia wants to decide on whether to build a large or a small store in the city of Dammam. The expected net present value of the return per month of the decision will...
A:
Decision Tree for Al Andalus retail store in Saudi Arabia Net Present Value 4 820 000 if the management decides to build a large store hence the expec......
Q:
Research an article from an online source, such as The Economist, Wall Street Journal, Journal of Economic Perspectives, American Journal of Agricultural Economics, or another academic journal. The...
A:
A Synopsis of Case Study The selected journal article for this review is Julia Angwin Dana Mattioli s Sept 2012 Coming Soon Toilet Paper Priced like A......
Q:
Listed below are eight technical accounting terms introduced in this chapter. Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the...
A:
a Flow assumption b A......
Q:
On May 10, Hudson Computing sold 90 Millennium laptop computers to Apex Publishers. At the date of this sale, Hudsons perpetual inventory records included the following cost layers for the Millennium...
A:
a Cost of Goods Sold 137 800 Inventory 137 800 To record the cost of 90 Millenium computers sold to......
Q:
On May 10, Hudson Computing sold 90 Millennium laptop computers to Apex Publishers. At the date of this sale, Hudsons perpetual inventory records included the following cost layers for the Millennium...
A:
a Cost of Goods Sold 137 800 Inventory 137 800 To record the cost of 90 Millenium computers sold to......
Managerial Accounting Creating Value in a Dynamic Business Environment 9th edition - ISBN: 78110912 - Free Book