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í Safari File Edit View History Bookmarks Develop Window Help ... 0 Amybusinesscourse.com O * = R 96% O Sun 9:38 PM Q = od o Safari File Edit View History Bookmarks Dovolop Wi... Chegg.com Homework 2 BusinessCourse = Menu O Meredith Milholland - ACCT20653:080-Intro to Accounting-TTH The accounting equation for Badger Enterprises is as follows: Assets Liabilities + Stockholders' Equity $240,000 $120,000 + $120,000 12345 678910 11 12 13 14 15 b Financial: Ch 1: Financial Accounting and Business Decisions If the company now signs a bank note payable in exchange for $30,000, the accounting equation will change to: 16 17 18 19 20 21 22 23 24 25 b Financial: Ch 2: Processing Accounting Information Select one: O A. Assets Liabilities $270,000 = $120,000 + Stockholders' Equity $150,000 26 27 28 29|| Support 31 32 33 34 Financial: Ch 3: Accrual Basis of Business Accounting Assets Liabilities $240,000 = $90,000 + Stockholders' Equity $150,000 Finish attempt ... Financial: Ch 4: Understanding Financial Statements Financial: Ch 13: Analysis and Interpretation of Financial Statements O C. Assets Liabilities $240,000 = $150,000 + Stockholders' Equity $90,000 Managerial: Ch 1: Overview of Managerial Accounting O D. Assets Liabilities $270,000 = $150,000 + Assets Liabil Stockholders' Equity $120,000 N9OOOED II OQ BOTO ZAO U

Explanation / Answer

The correct answer :

D.

Signing a bank note payable for $ 30,000 would increase both assets ( cash) and liabilities ( note payable) by $ 30,000. The transaction does not affect stockholders' equity. Hence it remains at $ 120,000.

Assets = Liabilities + Stockholders' Equity $ 270,000 $ 150,000 $ 120,000

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