Question

Company Baldwin invested $35,640,000 in plant and equipment last year. The plant investment was funded with...

Company Baldwin invested $35,640,000 in plant and equipment last year. The plant investment was funded with bonds at a face value of $26,131,576 at 13.9% interest, and equity of $9,508,424. Depreciation is 15 years straight line. For this transaction alone which of the following statements are true?Select: 5

On the Balance sheet, Long Term Debt changed by $26,131,576.
Since the new plant was funded with debt and equity, on the Balance sheet Retained Earnings decreased by $9,508,424, the difference between the investment $35,640,000 and the bond $26,131,576.
On the Balance sheet, Plant & Equipment increased by $35,640,000.
Depreciation increased by $2,376,000.
Buying the plant had no net effect on the Cash account, because the plant was paid for by the bond plus retained earnings.
Cash went down by $35,640,000 when the plant was purchased.
Cash was pulled from retained earnings to cover the $9,508,424 difference between the plant purchase and bond issue.
Cash went up when the Bond was issued by $26,131,576.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Company Baldwin invested $51,960,000 in plant and equipment last year. The plant investment was funded with...
Company Baldwin invested $51,960,000 in plant and equipment last year. The plant investment was funded with bonds at a face value of $34,355,973 at 13.6% interest, and equity of $17,604,027. Depreciation is 15 years straight line. For this transaction alone which of the following statements are true? Select: 5 a. Cash was pulled from retained earnings to cover the $17,604,027 difference between the plant purchase and bond issue. b. Depreciation increased by $3,464,000. c. Since the new plant was funded...
Company Baldwin invested $45,300,000 in plant and equipment last year. The plant investment was funded with...
Company Baldwin invested $45,300,000 in plant and equipment last year. The plant investment was funded with bonds at a face value of $24,178,667 at 13.6% interest, and equity of $21,121,333. Depreciation is 15 years straight line. For this transaction alone which of the following statements are true? [X ] On the Balance sheet, Plant & Equipment increased by $45,300,000. [X] On the Balance sheet, Long Term Debt changed by $24,178,667. [ ] Since the new plant was funded with debt...
Last year the Digby company increased their equity. In 2019 their equity was $49,136. Last year...
Last year the Digby company increased their equity. In 2019 their equity was $49,136. Last year (2020) it increased to $52,451. What are causes of change in equity? Check all that apply. Select: 3 An accounts payable change of$999. A change in short term debt of-$4,473. Depreciation of -$41,287 A change of plant and equipment of$9,580. Profits of $11,419 Issue and retirement of stock . A bond issue of$1,378. Change in inventory of-$4,227. A change in cash of -$19. Plant...
Last year the Chester company increased their equity. In 2019 their equity was $49,468. Last year...
Last year the Chester company increased their equity. In 2019 their equity was $49,468. Last year (2020) it increased to $52,236. What are causes of change in equity? Check all that apply. A change in cash of -$1,860. A change of plant and equipment of$9,580. An accounts payable change of$1,437. Profits of $11,475 A bond issue of$1,308. Dividend payment of$7,169. Issue and retirement of stock . A change in short term debt of-$4,147. Depreciation of -$41,287 Plant Improvements of $9,580...
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment,...
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment, and the firm has no excess cash. The firm has total assets of $2.7 million and net plant and equipment equals $2.4 million. It has notes payable of $145,000, long-term debt of $756,000, and total common equity of $1.55 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has...
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment....
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $2.4 million and net plant and equipment equals $2.1 million. It has notes payable of $140,000, long-term debt of $753,000, and total common equity of $1.45 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has no preferred stock on its balance sheet....
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment....
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $2.5 million and net plant and equipment equals $2.2 million. It has notes payable of $140,000, long-term debt of $752,000, and total common equity of $1.55 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has no preferred stock on its balance sheet....
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment....
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $2.9 million and net plant and equipment equals $2.5 million. It has notes payable of $150,000, long-term debt of $745,000, and total common equity of $1.45 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has no preferred stock on its balance sheet....
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment....
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $2.8 million and net plant and equipment equals $2.4 million. It has notes payable of $150,000, long-term debt of $747,000, and total common equity of $1.55 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has no preferred stock on its balance sheet....
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment,...
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment, and the firm has no excess cash. The firm has total assets of $3 million and net plant and equipment equals $2.5 million. It has notes payable of $150,000, long-term debt of $746,000, and total common equity of $1.55 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT