Question

Analysis of Mueller Company's accounts show that as a result of a single transaction, both cash and notes payable increased by $10,000. Which transactions would have caused this increase?

Answer 1

Answer: borrowing cash and signing a promissory note.

Step-by-step explanation:

Analysis of Mueller Company's accounts show that as a result of a single transaction, both cash and notes payable increased by $10,000.

The transactions that would have caused this increase are borrowing of cash and signing a promissory note. It should be noted that since the cash and notes payable increased by $10,000, it simply means that the company has borrowed funds.