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Part A: Record the effect of each of the following sales of long-term assets on the accounting equation.Write in BOTH the correct dollar amounts and the titles of the accounts involved.
Part B: Use your answer from Part A,SALE 2. to answer the following three questions:
a. $7,472 cash from operating activities
b. $30,000 cash from operating activities
c. $7,472 cash from investing activities.
d. $30,000 cash from investing activities
e. $7,472 cash from financing activities
f. $30,000 cash from financing activities
Bond Interest Expense
The cost incurred by an issuer of bonds as a result of interest payments made to bondholders over the life of the bond.
Income Statement
A financial statement that shows a company's revenue and expenses over a specific period, resulting in a profit or loss.
Par
The face value of a bond or stock, representing the amount the issuer agrees to pay at maturity (for bonds) or the value attributed to a share for accounting purposes.
Market Rate
The prevailing interest rate that is available in the marketplace for loans or investments of a similar risk level and maturity.
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