Electrodo Co. purchased land for $55,000 with $20,000 paid in cash and $35,000 in notes payable. What
Question:
Electrodo Co. purchased land for $55,000 with $20,000 paid in cash and $35,000 in notes payable. What effect does this transaction have on the accounts under the accrual basis of accounting?
a. Net increase in assets and liabilities of $55,000
b. Net increase in assets of $75,000 and a net decrease in liabilities of $30,000
c. Net increase in assets of $35,000 and a net increase in liabilities of $35,000
d. Net increase in assets of $55,000 and a net decrease in liabilities of $35,000
The unearned rent account has a balance of $60,000. If $4,000 of the $60,000 is unearned at the end of the accounting period, the amount of the adjusting entry is:
a. $56,000.
b. $60,000.
c. $64,000.Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter