Question

Lakesha Corp. purchased $3,000 of supplies on account. The supplies will be used over the next few months. This event causes O assets and shareholders' equity to increase by $3,000, O assets and shareholders' equity to decrease by $3,000. O assets and expenses to decrease by $3,000. O assets and liabilities to increase by $3,000. 2 pts D Question 17 Which of the following changes describes the payment of $30.000 for a new bulldozer? Assets and shareholders' equity decrease by $30,000. O Assets decrease and shareholders'equity increases by $30,000. O No net change in total assets. Assets decrease by $30,000. 2 pts D Question 18 Ayear-end cash balance is shown on which of the following financial statements? Statement of cash flows only.

Answer 1

Question 16

Correct answer-----------asset and liability to increase by $3,000.

Supplies purchased will be debited to supplies account and not directly to supplies expense. Supplies expense will be debited over the next months when supplies are used. Supplies will be recorded as asset hence asset increase by $3000 and since settlement will be done on account a liability for accounts payable increase by $3000.

Question 17

Correct answer-----------No net change in total assets.

There will be no net change in asset because decrease in one asset (Cash) will be equal to increase in another asset (Equipment).

Question 18

Correct answer-----------

It is shown on Cash flow statement and balance sheet.

Please leave in below comment the options for Question 18 if my answer is not clear.