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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question 8
Howard Company had a transaction that caused a $5,000 increase in both assets and liabilities. This
transaction could have been a(n)
O purchase of office equipment for $12,000, paying $7,000 cash and issuing a note payable for the balance
O investment of $5,000 cash in the business by the stockholders.
O purchase of office equipment for $5,000 cash
O repayment of a $5,000 bank loan
Question 9
Debits
increase both assets and liabilities.
decrease both assets and liabilities
O increase assets and decrease liabilities
O decrease assets and increase liabilities"
Transcribed Image Text:D
Question 8
Howard Company had a transaction that caused a $5,000 increase in both assets and liabilities. This
transaction could have been a(n)
O purchase of office equipment for $12,000, paying $7,000 cash and issuing a note payable for the balance
O investment of $5,000 cash in the business by the stockholders.
O purchase of office equipment for $5,000 cash
O repayment of a $5,000 bank loan
Question 9
Debits
increase both assets and liabilities.
decrease both assets and liabilities
O increase assets and decrease liabilities
O decrease assets and increase liabilities
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- What is Bank A's ROA based on Figure 1 Balance Sheet ($ in Millions): Assets Liability and Equity Cash $850 Deposits $6,475 Securities 1,925 Other borrowing 1,645 Loans 5,400 Equity 1,030 Other 975 Total $9,150 Total $9,150 Figure 2 Income Statement ($ in Millions): Interest income on loans $450 Interest income on securities 95 Interest expense 246 Noninterest income 78 Noninterest expense 112 Provision for loan loss 35 Taxes 115 Net Income $115 Based on Figures 1 and 2, what is Bank A's Equity Multiplier? A. 8.88 B. 4.75 C. 7.23 D. 8.11arrow_forwardAnswer please with correct optionarrow_forwardEffect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $220,000 of bonds, on which there was $2,200 of unamortized discount, for $229,000. b. Sold 7,000 shares of $15 par common stock for $30 per share. c. Sold equipment with a book value of $51,800 for $74,600. d. Purchased land for $362,000 cash. e. Purchased a building by paying $75,000 cash and issuing a $120,000 mortgage note payable. f. Sold a new issue of $150,000 of bonds at 98. g. Purchased 4,400 shares of $15 par common stock as treasury stock at $28 per share. h. Paid dividends of $1.60 per share. There were 34,000 shares issued and 5,000 shares of treasury stock. Effect Amount a. b. C. d. e. f. g. h.arrow_forward
- Manjiarrow_forwardEffect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $310,000 of bonds, on which there was $3,100 of unamortized discount, for $322,000. b. Sold 7,000 shares of $30 par common stock for $59 per share. c. Sold equipment with a book value of $48,700 for $70,100. d. Purchased land for $406,000 cash. e. Purchased a building by paying $51,000 cash and issuing a $110,000 mortgage note payable. f. Sold a new issue of $180,000 of bonds at 99. g. Purchased 2,900 shares of $25 par common stock as treasury stock at $46 per share. h. Paid dividends of $2.00 per share. There were 25,000 shares issued and 4,000 shares of treasury stock. a. b. C. d. e. f. 9. h. Effect Amountarrow_forward1. The following accounts appeared on the partial Balance Sheet of Brandy Inc.: Accounts Payable Accounts Receivable $ 5,500 2,300 2,820 3,000 8,140 18,560 18,760 100 Bank Loan Cash Common Stock Inventory Long-term debt Machinery What is the total amount of all assets (rounded to the nearest dollar)?arrow_forward
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