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Financial Accounting

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Moderate

Impact on Debt Level

FINACT-BSXVRI

Which of the following transactions would affect the amount of debt reported by Anderson, Inc?

Note: you may choose more than one answer.

A

Anderson, Inc. sold 10,000 shares of common stock to investors for cash. The price received was \$12.00 per share and the par value of the stock was \$1.00 per share.

B

Anderson made a down payment of \$12,000 on January 1, 2014, for security monitoring for the first 6 months of 2014.

C

Tuttle Savings and Loan loaned \$100,000 to Anderson to help finance its expansion plans. The term of the loan was 3 years and interest was to be paid at the end of the loan at the annual rate of 14%.

D

Anderson sold 3,000 shares of its preferred stock to investors at par. Par for it preferred stock is \$25.00 per share.

E

Anderson received \$16,000 from a customer as a deposit on an upcoming job.

F

Anderson performed 1/2 of the required work for the \$16,000 deposit it received from a customer as a down payment previously.