The company borrowed P4,000,000 loan from a bank to finance the acquisition of another land for...

  

 
 

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The company borrowed P4,000,000 loan from a bank to finance the acquisition of another land for use in company operations. The company signed a promissory note in favor of the bank and made the title of the owner's existing land and building valued at P3,000,000 as collateral. As a result of this transaction, how much was the increase in the company's total assets and total liabilities? O P4,000,000 in total assets and P4,000,000 in total liabilities O P1,000,000 in total assets and P4,000,000 in total liabilities O P1,000,000 in total assets and P1,000,000 in total liabillties O P4,000,000 in total assets and P1,000,000 in total liabilities The company borrowed P4,000,000 loan from a bank to finance the acquisition of another land for use in company operations. The company signed a promissory note in favor of the bank and made the title of the owner's existing land and building valued at P3,000,000 as collateral. As a result of this transaction, how much was the increase in the company's total assets and total liabilities? O P4,000,000 in total assets and P4,000,000 in total liabilities O P1,000,000 in total assets and P4,000,000 in total liabilities O P1,000,000 in total assets and P1,000,000 in total liabillties O P4,000,000 in total assets and P1,000,000 in total liabilities

Answer rating: 100% (QA)

Option A P4000000 in Total ... View the full answer