Consider the following transaction: the company A obtain a $3-$month loan from the bank worth of $$1$ million $($$$1$m$).$ Ignore the interest rate charge on the loan.

QUESTIONS:

$1.$ What accounts on the balance sheet of the company must be modified to reflect $($account for$)$ this transaction that has just taken place? Circle them on the typical corporate balance sheet, Figure $2$ below.

$2.$ What accounting entry the company will make into its balance sheet? Fill the blanks below

$$ Debit:

$$ Credit:

$3.$ How the total size of the company$$s balance sheet changes? Circle the appropriate answer: $($i$)$ total assets decrease, $($ii$)$ no change in total assets, or $($iii$)$ total assets increase.Consider the following transaction: the company A obtain a $3-$month loan from the bank worth of $$1$

million $($$$1m).$ Ignore the interest rate charge on the loan.

QUESTIONS:

What accounts on the balance sheet of the company must be modified to reflect $($account for$)$ this

transaction that has just taken place? Circle them on the typical corporate balance sheet, Figure $2$

below.

What accounting entry the company will make into its balance sheet? Fill the blanks below

Debit

Credit

How the total size of the company's balance sheet changes? Circle the appropriate answer: $($i$)$ total

assets decrease, $($ii$)$ no change in total assets, or $($iii$)$ total assets increase.

Figure $2$: Typical balance sheet of a company