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    Elix's Avatar
    Elix Posts: 4, Reputation: 1
    New Member
    		  
    #1

    Oct 4, 2015, 08:06 AM
    When dealing with claims on company assets
    • owners take precedence over creditors.
    • All of the choices are possible: it depends on the situation
    • owners and creditors are treated equally
    • creditors take precedence over owners
    Elix's Avatar
    Elix Posts: 4, Reputation: 1
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    #2

    Oct 4, 2015, 08:12 AM
    Which of the following scenarios could explain the journal entry below?
    • The company pays $4,000 in cash and $6,000 in notes payable to buy $10,000 equipment
    • The company buys $10,000 of equipment for $4,000 in cash and 6,000 on credit
    • The company sells $10,000 of equipment for $4,000 in cash and $6,000 on credit
    • The company sells $10,000 of equipment for $4,000 in cash and pays off $6,000 it owes on the equipment



    dr Cash- 4,000
    dr Notes Receivable 6,000
    cr Equipment 10,000
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
    		  
    #3

    Oct 4, 2015, 08:26 AM
    What do YOU think ?
    While we're happy to HELP we wont do all the work for you.
    Show us what you have done and where you are having problems..
    Elix's Avatar
    Elix Posts: 4, Reputation: 1
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    #4

    Oct 4, 2015, 01:16 PM
    I think the answer is the company sells $10,000 of equipment for $4,000 in cash and $6,000 on credit.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #5

    Oct 4, 2015, 01:59 PM
    Yes that is one possible answer what was your answer for the first part of the question?
    Elix's Avatar
    Elix Posts: 4, Reputation: 1
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    #6

    Oct 4, 2015, 02:18 PM
    Quote Originally Posted by paraclete View Post
    Yes that is one possible answer what was your answer for the first part of the question?
    Creditors take precedence over owners.
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    paraclete Posts: 2,706, Reputation: 173
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    #7

    Oct 5, 2015, 02:03 AM
    Well done
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