Frank Smelding decided to start his own business selling magazines. He contributed a building as...
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Accounting
Frank Smelding decided to start his own business selling magazines. He contributed a building as an initial investment to start his company. The building is valued at $750,000 and comes with an attached mortgage payable of $300,000. What is the effect of this transaction on the accounting equation?
Select one:
a. Increase Stockholder's Equity by $750,000
b. Decrease Stockholder's Equity by $450,000
c. Increase Assets by $450,000
d. Increase Stockholder's Equity by $450,000
Horizon Company sells phone cases for $5 each. Given the following data regarding phone case sales, how many cases did Cloud 9 sell during the year before returns and allowances? Cost of Goods Sold Sales Discounts Sales Returns and Allowances Operating Expenses Net Income $450,000 $70,000 $25,000 $90,000 $330,000 Select one: O a. $193,000 O b. $127,000 O c. $174,000 O d. $155,000
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