Louisiana State University, Shreveport ACCOUNTING ACCOUNTING 701 I am having trouble answering this questions. How do I do the calculation and determination?
ABC company issued a five-year corporate bond of $600,000 with a 5% interest rate for $580,000. What effect the bond issuing on the accounting equation.
a. Increase assets and liabilities.
b. Increase and decrease stockholders’ equity.
Increase and decrease stockholders’ equity.
c. Increase assets and decrease liabilities.
d. Increase and decrease assets.
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