Alpha Inc. borrows $15,000 to finance its operations by signing a note payable with a bank....
Alpha Inc. borrows $15,000 to finance its operations by signing a note payable with a bank. Identify the effect of this transaction on Alpha's financial statements.
Homework Answers
| Borrowing of funds for business operations by issue of notes payable will have the following effect on financial statements. On account of borrowing Cash being current assets will increase by $ 15,000 under assets head of balance sheet and Notes Payable being a current liability will increase under Liabilities side of balance sheet. | |||||
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Alpha Inc. borrows $15,000 to finance its operations by signing
a note payable with a bank....
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