Howard Company Had a Transaction That Caused a $5,000 Increase

question 117

Multiple Choice

Howard Company had a transaction that caused a $5,000 increase in both assets and total liabilities. This transaction could have been a(n)

• A) purchase of office equipment for $12,000, paying $7,000 cash and issuing a note payable for the balance.
• B) investment of $5,000 cash in the business by the stockholders.
• C) purchase of office equipment for $5,000 cash.
• D) repayment of a $5,000 bank loan.

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Definitions:

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