Linda Keller opened an engineering office and titled the business Engineering Enterprises P.C.During its first month of operations,it completed the following transactions: I.Linda invested $30,000 in the business,which in turn issued common stock to her.
V.The business borrowed $8,000 from the bank,issuing a note payable.
At the end of the month,total liabilities would be:
Definitions:
Equity Method
An accounting technique used by a company to record its investment in another company when it has significant influence but does not have full control or majority ownership.
Income Tax Allocation
Refers to the process of assigning income tax expense or benefit to various components of an organization's financial statements.
Balance Sheet
A financial statement that shows a company's financial position at a specific point in time, detailing assets, liabilities, and shareholders' equity.
Cost Method
An accounting approach used for investments, where the investment is recorded at its original purchase cost without considering changes in its market value.
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