Carnival Corporation purchased a limousine for $185000 on June 2 2022.Sales taxes amounted to $3500 and there was a cost of $10000 for painting the company's logo on the side.The company paid for two employees to attend a training course and get chauffers' licenses at a cost of $2500.Use the following tabular analysis to show the effect of these expenditures on Carnival's accounts assuming that all payments were made in cash.
A)Increase Equipment $198500 increase expense $2500 and decrease Cash $201000.
B)Increase Equipment $195000 increase expenses $5000 and decrease Cash $201000.
C)Increase Equipment $185000 and decrease Cash $185000.
D)Increase Equipment $188500 increase expenses $12500 and decrease Cash $201000.

Question

Carnival Corporation purchased a limousine for $185000 on June 2 2022.Sales taxes amounted to $3500 and there was a cost of $10000 for painting the company's logo on the side.The company paid for two employees to attend a training course and get chauffers' licenses at a cost of $2500.Use the following tabular analysis to show the effect of these expenditures on Carnival's accounts assuming that all payments were made in cash. 
A)Increase Equipment $198500 increase expense $2500 and decrease Cash $201000. 
B)Increase Equipment $195000 increase expenses $5000 and decrease Cash $201000. 
C)Increase Equipment $185000 and decrease Cash $185000. 
D)Increase Equipment $188500 increase expenses $12500 and decrease Cash $201000.

Quizplus · Accepted Answer

The Answer of Carnival Corporation purchased a limousine for $185000 on June 2 2022.Sales taxes amounted to $3500 and there was a cost of $10000 for painting the company's logo on the side.The company paid for two employees to attend a training course and get chauffers' licenses at a cost of $2500.Use the following tabular analysis to show the effect of these expenditures on Carnival's accounts assuming that all payments were made in cash. 
A)Increase Equipment $198500 increase expense $2500 and decrease Cash $201000. 
B)Increase Equipment $195000 increase expenses $5000 and decrease Cash $201000. 
C)Increase Equipment $185000 and decrease Cash $185000. 
D)Increase Equipment $188500 increase expenses $12500 and decrease Cash $201000.

Carnival Corporation Purchased a Limousine for $185000 on June 2