Evaluate each of the following transactions in terms of their effect on assets, liabilities, and equity....

Evaluate each of the following transactions in terms of their effect on assets, liabilities, and equity.

1. Borrow $52,000 from a bank
2. Purchase equipment for $48,000 in cash

What is the net change in Total Assets?

Expert Solution

Change in total assets = $52,000 Increase

Working

Transaction		Amounts
1	Increase in cash from Bank loan	$ 52,000.00
2-A	Decrease in cash for payment of Equipment	$ (48,000.00)
2-B	Increase in Equipment	$ 48,000.00
	Total Increase in Total assets	$ 52,000.00

ekkarill92 answered 3 years ago

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Evaluate each of the following transactions in terms of their effect on assets, liabilities, and equity....

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