This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Slumbers, Inc borrows 3,000 at 12 from a bank on September 1, 2012 and agrees to pay the interest ... (Read 71 times)

Zoey63294

  • Hero Member
  • *****
  • Posts: 539
on: Jul 5, 2018
Slumbers, Inc borrows 3,000 at 12 from a bank on September 1, 2012 and agrees to pay the interest and principal in two years.
 
  What is the effect on the accounting equation of the adjusting entry to record interest for the year ended December 31, 2012?
  A) Assets will increase by 3,000.
  B) Liabilities will decrease by 120.
  C) Shareholders' equity will decrease by 120.
  D) Cash will decrease by 120.

Question 2

Payments from the petty cash fund should not be made without obtaining some sort of receipt in return.
 a. True
   b. False
   Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

chereeb

  • Sr. Member
  • ****
  • Posts: 326
Reply #1 on: Jul 5, 2018
Answer to Question 1

C

Answer to Question 2

True


Zoey63294

  • Member
  • Posts: 539
Reply 2 on: Jul 5, 2018
Wow, this really help

lcapri7

  • Member
  • Posts: 350
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Old Forum Look (2012-2013) Old Forum Look (2012-2013)
The Yorktown Campaign, April to September 1781 The Yorktown Campaign, April to September 1781
Creede, Colorado, circa 1890, a rough silver mining town that grew from 660 people in 1889 to over 1 Creede, Colorado, circa 1890, a rough silver mining town that grew from 660 people in 1889 to over 1
Example of Reconciling a Bank Statement Example of Reconciling a Bank Statement
How to calculate simple interest (Part 4; P = I/rt) How to calculate simple interest (Part 4; P = I/rt)
Nine $10 000, 4% bonds with interest payable semi-annually and redeemable at par are purchased ... Nine $10 000, 4% bonds with interest payable semi-annually and redeemable at par are purchased ...
Video: Chemical Messengers Animation

For a complete list of videos, visit our video library