1 2.1.2 Quiz: Accounting Cycle: Transactions, Journal Entries and Worksheets Question 1 of 10
Jose is an accountant at George Huervas Inc. He is analyzing a transaction in
which his the CEO signed a note payable for $1,000 worth of chairs and
$5,000 worth of desks. How will this transaction affect the accounting
equation?
A. Furniture ($6,000) = Liabilities ($1,000) + Equity ($5,000)
B. Fumiture ($6,000) = Liabilities ($6,000) + Equity (50)
C. Furniture ($6,000) = Liabilities ($5,000) + Equity ($1,000)
D. Furniture ($6,000) = Liabilities ($0) + Equity ($6,000)
SUBMIT