QUESTION 46 Indicate the effect of the following event on the companys accounting equation For each account title affected indicate the specific account name, dollar change, and whether it increased or decreased Show the correct effect in the Stockholders Equity column so the Balance Sheet balances Issued 1,000 shrs $100 par, 8 Preferred stock, for Land, when the stock was selling for $300 share Increased the asset cash $300,000, the stockholders' equity accounts preferred stock $100,000 and additional paid in capital preferred $200,000 Increased the asset land $300,000, the stockholders' equity account preferred stock $300,000 Increased the asset land $300,000, the stockholders' equity accounts preferred stock $200,000 and additional paid in capital preferred $100,000 Increased the asset land $300,000, the stockholders' equity accounts preferred stock $100,000 and additional paid in capital preferred $200,000 QUESTION 45 On January 1, 2020, Smith Company signed a ten year Note for the acquisition of equipment Annual note payments of $22,000, based on an interest rate of 10 are to be made every December 31, beginning with December 2020 The present value of the minimum lease payments is $135,180 Required Indicate the effect of the following on the companys accounting equation Indicate each account title affected and the dollar change and whether it increased or decreased To record the second note payment on December 31, 2021 Increase interest expense $12,669 80, thereby decreasing net income and retained earnings for $12,669 80 Decrease cash $22,000 and note payable $9,330 20 Increase interest expense $13,518, thereby decreasing net income, retained earnings, and cash for $13,518 Increase interest expense $22,000, thereby decreasing net income, retained earnings, and cash for $22,000 Increase interest expense $13,500, thereby decreasing net income and retained earnings for $13,500 Decrease cash $22,000 and note payable $8,500 QUESTION 44 On January 1, 2020, Smith Company signed a ten year Note for the acquisition of equipment Annual note payments of $22,000, based on an interest rate of 10 are to be made every December 31, beginning with December 2020 The present value of the minimum lease payments is $135,180 Required Indicate the effect of the following on the companys accounting equation Indicate each account title affected and the dollar change and whether it increased or decreased To record the first note payment on December 31, 2020 Increase interest expense $13,518, thereby decreasing net income, retained earnings, and cash for $13,518 Increase interest expense $13,518, thereby decreasing net income and retained earnings for $13,518 Decrease cash $22,000 and note payable $8,482 Increase interest expense $13,500, thereby decreasing net income and retained earnings for $13,500 Decrease cash $22,000 and note payable $8,500 Increase interest expense $22,000, thereby decreasing net income, retained earnings, and cash for $22,000

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QUESTION 46 Indicate the effect of the following event on the companys accounting equation. For each account title affected indicate the specific account name, dollar

QUESTION 46

Indicate the effect of the following event on the companys accounting equation. For each account title affected indicate the specific account name, dollar change, and whether it increased or decreased. Show the correct effect in the Stockholders Equity column so the Balance Sheet balances.

Issued 1,000 shrs. $100 par, 8% Preferred stock, for Land, when the stock was selling for $300/share

		Increased the asset cash $300,000, the stockholders' equity accounts preferred stock $100,000 and additional paid in capital-preferred $200,000.
		Increased the asset land $300,000, the stockholders' equity account preferred stock $300,000.
		Increased the asset land $300,000, the stockholders' equity accounts preferred stock $200,000 and additional paid in capital-preferred $100,000.
		Increased the asset land $300,000, the stockholders' equity accounts preferred stock $100,000 and additional paid in capital-preferred $200,000.

QUESTION 45

On January 1, 2020, Smith Company signed a ten-year Note for the acquisition of equipment. Annual note payments of $22,000, based on an interest rate of 10% are to be made every December 31, beginning with December 2020. The present value of the minimum lease payments is $135,180.

Required:

Indicate the effect of the following on the companys accounting equation. Indicate each account title affected and the dollar change and whether it increased or decreased.

To record the second note payment on December 31, 2021.

		Increase interest expense $12,669.80, thereby decreasing net income and retained earnings for $12,669.80 Decrease cash $22,000 and note payable $9,330.20.
		Increase interest expense $13,518, thereby decreasing net income, retained earnings, and cash for $13,518.
		Increase interest expense $22,000, thereby decreasing net income, retained earnings, and cash for $22,000.
		Increase interest expense $13,500, thereby decreasing net income and retained earnings for $13,500. Decrease cash $22,000 and note payable $8,500.

QUESTION 44

Required:

Indicate the effect of the following on the companys accounting equation. Indicate each account title affected and the dollar change and whether it increased or decreased.

To record the first note payment on December 31, 2020.

		Increase interest expense $13,518, thereby decreasing net income, retained earnings, and cash for $13,518.
		Increase interest expense $13,518, thereby decreasing net income and retained earnings for $13,518. Decrease cash $22,000 and note payable $8,482.
		Increase interest expense $13,500, thereby decreasing net income and retained earnings for $13,500. Decrease cash $22,000 and note payable $8,500.
		Increase interest expense $22,000, thereby decreasing net income, retained earnings, and cash for $22,000.