Note 1: On April 1, 2011, Seaquist Corporation received a $20,000, 10 percent note from a customer
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Note 2: On August 1, 2011, to meet a cash shortage, Seaquist Corporation obtained a $20,000, 12 percent loan from a local bank. The principal of the note and interest expense are payable at the end of six months.
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For the relevant transaction dates of each note, indicate the amounts and direction of effects on the elements of the balance sheet and income statement. Using the following format, indicate + for increase, for decrease, and NE for no effect. (Reminder: Assets = Liabilities + Stockholders Equity; Revenues Expenses = Net Income; and Net Income accounts are closed to Retained Earnings, a part of StockholdersEquity.) Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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