A company receives $10 million cash from investors in exchange for new common stock. Several weeks later, the company buys a $25 million machinery using all of the cash from the stock issue and signing a promissory note for the remainder. The accounts involved in these two transactions are: Multiple Choice Contributed Capital; Cash; Equipment; and Notes Payable. Shareholders' Equity: Cash; Long-term Investments; and Notes Payable. Retained Earnings; Equipment; and Notes Payable. Long-term Investments; Cash; Equipment; and Accounts Payable.

A company receives $10 million cash from investors in exchange for new common stock. Several weeks later, the company buys a $25 million machinery using all of the cash from the stock issue and signing a promissory note for the remainder. The accounts involved in these two transactions are: Multiple Choice Contributed Capital; Cash; Equipment; and Notes Payable. Shareholders' Equity: Cash; Long-term Investments; and Notes Payable. Retained Earnings; Equipment; and Notes Payable. Long-term Investments; Cash; Equipment; and Accounts Payable.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter3: The Financial Environment: Markets, Institutions And Investment Banking

Section: Chapter Questions

Problem 15PROB

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