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ABC Company issued a $100,000, 10%, six-month, note on January 1, 2020.  What effect would the payment of principal and interest at maturity on July 1 have on ABC company’s accounting equation?

Which of the following statements is true if the market rate of interest on bonds is less than the contract (stated) rate of interest when bonds are issued?

Which of the following would be considered a revenue expenditure?

Total assets will _________________ and total stockholders’ equity will _________________ when annual depreciation is recorded.

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?