Equipment with an estimated market value of $55,000 is offered for sale at $75,000. The equipment is acquired for $20,000 in cash and a note payable of $40,000 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is
A) $55,000
B) $60,000
C) $20,000
D) $75,000
B
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The payment of accounts payable results in a(n)
a. decrease in liabilities and a decrease in assets. b. decrease in liabilities and an increase in assets. c. increase in liabilities and a decrease in owners' equity. d. decrease in liabilities and an increase in owners' equity.
What is the most powerful selling technique that the successful salesperson can use?
Fill in the blank(s) with the appropriate word(s).
Net Income:
A. Decreases equity. B. Represents the amount of assets owners put into a business. C. Represents owners' claims against assets. D. Is the excess of revenues over expenses. E. Equals assets minus liabilities.
On April 1, Year 1, Astor Corp. purchased and placed a plant asset in service. The following information is available regarding the plant asset: Acquisition cost $130,000Estimated salvage value$15,000Estimated useful life 5 yearsMake the necessary adjusting journal entries at December 31, Year 1, and December 31, Year 2 to record depreciation for each year under the straight-line depreciation method.
What will be an ideal response?