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ABC Company issues $100,000 of 6%, 5-year bonds at face value on January 1. The market rate of interest when the bonds are issued is also 6%. What effect does the issuance of the bonds on January 1 have on ABC Company’s accounting equation?

Aspen Company purchased machinery on June 15 for cash.  The purchase price was $50,000, sales tax was $5,000, freight costs were $1,000, and installation costs were $3,000. The installation included cost of $500 to repair the equipment which was damaged during installation. What would be the effect of the transaction on the accounting equation?

Treasury stock is classified as a:

What effect would the amortization of a patent have on the accounting equation?

Which of the following is considered a capital expenditure?

Aspen Company purchased machinery on June 15 for cash. The purchase price was $50,000, sales tax was $5,000, freight costs were $1,000, and installation costs were $3,000. The installation included cost of $500 to repair the equipment which was damaged during installation. Which of the following statements would be true regarding this transaction?

Which of the following is considered a revenue expenditure?

Which of the following statements is true concerning fixed assets?

Hoffman Company purchases 10,000 shares of its own outstanding common stock for $150,000 on June 15. Which of the following statements would be true?

Which of the following statements is true concerning the debt ratio?