Connan, Inc.reported the following activities for the year:
·Borrowed $300,000 from the bank to be repaid in 5 years
·Issued stock to investors for $35,000 cash
·Paid dividends to shareholders totaling $10,000
·Purchased equipment by promising to pay $145,000 to a creditor over the next 3 years
A.Identify which activities are debt investments.
B.Identify which activities are equity investments.

Question

Quizplus · Accepted Answer

The Answer of Connan, Inc.reported the following activities for the year:
·Borrowed $300,000 from the bank to be repaid in 5 years
·Issued stock to investors for $35,000 cash
·Paid dividends to shareholders totaling $10,000
·Purchased equipment by promising to pay $145,000 to a creditor over the next 3 years
A.Identify which activities are debt investments.
B.Identify which activities are equity investments.

Connan, Inc.reported the Following Activities for the Year