Question

A transaction the cause asset of comapny A to increase by 192000 and the libilities to...

A transaction the cause asset of comapny A to increase by 192000 and the libilities to increse by192000. Which of the following transactions could have cause of this to occur?

A The company collect 192000 cash for performing a service

B The company lent 192000 in cash to a customer

C The company purchased land and a building for 200,000 paying 8000 in cash and signing a note for 192000

D The shareholders invested 192000 in the company

Business   Accounting   
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Answer #1
To record transaction C, below Journal is required:
Land & Building Account Dr. 200000
To Cash Account 8000
To Note Payable Account 192000
(Being transaction recorded)
Impact of above transaction to Balance Sheet:
Change in Asset Side:
Increase in Fixed Asset 200000
Decrease in Cash 8000
Net Impact 192000
Change in Liability Side:
Increase in Liabilities 192000
Net Impact 192000
So Answer is C
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