Author Question: How does the purchase of equipment by signing a note affect the accounting equation? a. assets ... (Read 233 times)

SGallaher96 · **on:** Jul 6, 2018

How does the purchase of equipment by signing a note affect the accounting equation?
a. assets increase; assets decrease
b. assets increase; liabilities decrease
c. assets increase; liabilities increase
d. assets increase; owner's equity increases

Question 2

Assume that a governmental entity acquires a new garbage truck. The garbage truck costs 189,000 . The vendor allowed a 30,000 allowance with the trade-in of the entity's old garbage truck, which had a net book value of 42,000 .

The government financed the balance with a short-term bank note. The new garbage truck would be recorded in the General Capital Assets account at
A. 147,000.
B. 159,000.
C. 189,000.
D. 201,000.