Answer:
No Change
Explanation:
Bravo Corporation
Balance Sheet
According to the question, total assets = Cash + Land + Buildings+ Other Assets = $8,500,000 + $4,700,000 + $1,300,000 + $200,000 = $14,700,000.
Total debt (Liabilities) = $2,070,000
Therefore, stockholders' equity = total assets - Total debt (Liabilities)
stockholders' equity = $14,700,000 - $2,070,000 = $12,630,000.
If Bravo borrows $300,000 to purchase equipment, the following journal entry is as follows:
Debit Equipment $300,000
Credit Accounts payable $300,000
As the transaction does not affect stockholders' equity, it will not change.
