ABC Company bought some computers for $10,000 and charged them. What happens to the accounting equation? Group of answer choices Assets and liabilities increase by $10,000. Assets do not change. Liabilities increase by $10,000 and owners' equity decreases by $10,000. Assets and owners' equity increase by $10,000.

ABC Company bought some computers for $10,000 and charged them. What happens to the accounting equation? Group of answer choices Assets and liabilities increase by $10,000. Assets do not change. Liabilities increase by $10,000 and owners' equity decreases by $10,000. Assets and owners' equity increase by $10,000.

Name: ABC Company bought some computers for $10,000 and charged them. What
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: ABC Company bought some computers for $10,000 and charged them. What happens to the accounting equation?Group of answer choicesAssets and liabilities increase by $10,000.Assets do not change.Liabilities increase by $10,000 and owners' equity decreas

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 2SEQ: The receipt of $8,000 cash for fees earned was recorded by Langley Consulting as an increase in cash...

See similar textbooks

Similar questions

The receipt of $8,000 cash for fees earned was recorded by Langley Consulting as an increase in cash of $8,000 and a decrease in retained earnings (revenues) of $8,000. What is the effect of this error on the accounting equation? A. Total assets will exceed total liabilities and stockholders’ equity by $8,000. B. Total assets will be less than total liabilities and stockholders’ equity by $8,000. C. Total assets will exceed total liabilities and stockholders’ equity by $16,000. D. The error will not affect the accounting equation.
Zion Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation? Group of answer choices Assets decrease by $75,000 and expenses decrease by $75,000. Liabilities increase by $75,000 and expenses decrease by $75,000. Assets increase by $75,000 and expenses decrease by $75,000. Assets increase by $75,000 and liabilities increase by $75,000.
ABC Company went to the bank and borrowed $100,000 from the bank. What happens to the business because of this transaction?Group of answer choices Total assets and owners equity increase by $100,000. There is no change in total assets. Total assets and liabilities increase by 100,000. Total assets increase by $100,000 and liabilities decrease by $100,000.
A) Coffee shop lists its total liabilities as of today as OMR 85,000 and its equity as OMR 25,000. Requirements: Calculate the business total assets using the accounting equation. If the capital account only had 10,000 at the beginning of the year and the owner made no withdrawals, did the business make a profit or loss this year and by what amount?
The business collects an OR5,000 account receivable from its customer. How is the accounting equation affected? Select one: O a. Assets increase OR 5,000; owner's equity increases OR 5,000. O b. Assets increase OR 5,000; liabilities decrease OR 5,000. c. Assets increase OR5,000; liabilities increase OR 5,000. O d. One asset increases by OR5,000; another asset decreases OR $5,000.
saction: Hall Company purchased land for $360,000 on account. Which two accounts are affected? What kind of accounts are they? Do the account balances increase or decrease? Increase Decrease Increase Decrease Do we debit or credit the accounts? Debit Credit Debit Credit
Scott's camera shop started the year with total assets of 90000 and total liabilities of 50000 .During the year, the business earned revenues of 130000 and incurred expenses of 70000. Scott made no additional capital contributions during the year, but did make drawing of 60000. What is the amount of owners equity at the end of year ?
The accounting equation for Goodboy's enterprises is as follows: Assets Liabilities Owner's Equity $120,000 = $60,000 + $60,000, If Goodboy's purchases office equipment on account for $12,000, the accounting equation will change to? Show Solution.
ABC Company sold some land that it had bought for $20,000 and received $20,000 cash. What happens to the accounting equation? Group of answer choices Total assets decrease by $20,000 Total assets increase $20,000 Total assets do not change. Liabilities increase $20,000.
Evaluate each of the following transactions in terms of their effect on assets, liabilities, and equity. 1. Purchase equipment for $43,000 in cash 2. Receive payment of $11,000 owed by a customer 3. Buy $14,000 worth of manufacturing supplies on credit 4. Issue $70,000 in stock 5. Pay $8,000 owed to a supplier 6. Borrow $55,000 from a bank 7. Buy $17,000 worth of manufacturing supplies on credit What is the net change in Total Equity?
Genna John started John Services Corp., a firm providing art services for advertisers, on June 1. On that date, Genna John invested $20,000 cash to begin the business in exchange for common stock. When John Service Corp. recorded this transaction: The Cash account increased by $20,000, and Contributed Capital decreased by $20,000. None of the listed choices are correct The Cash account decreased by $20,000, and Retained Earnings decreased by $20,000. The Cash account increased by $20,000, and Contributed Capital increased by $20,000. The Cash account increased by $20,000, and Retained Earnings decreased by $20,000. The Cash account decreased by $20,000, and Retained Earnings increased by $20,000. The Cash account decreased by $20,000, and Contributed Capital increased by $20,000. The Cash account decreased by $20,000, and Contributed Capital decreased by $20,000. The Cash account increased by $20,000, and Retained Earnings increased by $20,000.
1. Bought furniture for 1,500 cash for business use. 2. Sold food for 800 on credit, the cost of production were 550. Choices: a.) An increase in assets and a decrease in assets. b.) An increase in assets and an increase in stockholders equity. c.) An increase in assets and an increase in liabilities. d.) A decrease in assets and a decrease in stockholders equity. e.) A decrease in assets and a decrease in liabilities. f.) An increase in liabilities and a decrease in stockholders equity. g.) An increase in stockholders equity and a decrease in liabilities.