During the Month,a Company Enters into the Following Transactions

question 173

Essay

During the month,a company enters into the following transactions:
- Borrows $3,200 of cash from the bank by signing a formal agreement to repay the loan in 2 years.
- Buys $4,000 of new equipment on account.
- Pays off $2,400 of accounts payable.
- Pays off $1,200 of notes payable
Required:
Part a.Show the effect of these transactions on the basic accounting equation.
Part b.Prepare the journal entries that would be used to record the transactions.

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Definitions:

Video Games

Digital games played on computers, consoles, or mobile devices, often involving interactive gameplay.

Attending Classes

involves being present in a scheduled course or educational program in which teaching and learning are conducted.

Incentive

A reward or benefit that motivates individuals or entities to act in a certain way.

Attendance Policy

A set of rules or guidelines regarding the presence of individuals at a place of employment, school, or other organizations, usually outlining consequences for absence.