On November 1, Year 1 Shelter Company loaned $4,000 cash to Cove Company. The one-year note carried a 5% rate of interest. Which of the following shows how the loan will affect Shelter'sfinancial statements on November 1, Year 1?A.B.C.D.AssetsCash-4,000-4,000-4,000-4,000Multiple ChoiceONet+ Receivable =4,0004,000ΝΑΝΑOption AOption COption DBalance Sheet= Liabilities+ Stockholders' EquityAccountsCommon RetainedStock + EarningsPayable +ΝΑΝΑΝΑΝΑΝΑΝΑΝΑΝΑΝΑΝΑOption B4,000-4,000RevenueΝΑΝΑΝΑΝΑIncome StatementExpense Net IncomeΝΑΝΑΝΑΝΑΝΑΝΑΝΑΝΑStatement ofCash Flows-4,000 IA-4,000 OA4,000 IA-4,000 OA

The loans can be considered as the asset or liability for the firm as the case may be. When the loan…

On November 1, Year 1 Shelter Company loaned $4,000 cash to Cove Company. The one-year note carried a 5% rate of interest. Which of the following shows how the loan will affect Shelter's financial statements on November 1, Year 1? A. B. C. D. Cash -4,000 -4,000 -4,000 -4,000 Multiple Choice O Assets O O Net + Receivable = Payable + 4,000 ΝΑ 4,000 ΝΑ Option A Option C Option D Option B Balance Sheet =Liabilities + Stockholders' Equity Accounts Common Retained Stock + Earnings ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ 4,000 -4,000 ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ Revenue ΝΑ ΝΑ ΝΑ ΝΑ Income Statement Expense = Net Income ΝΑ ΝΑ ΝΑ ΝΑ NA ΝΑ ΝΑ ΝΑ Statement of Cash Flows -4,000 IA -4,000 OA 4,000 IA -4,000 OA

On November 1, Year 1 Shelter Company loaned $4,000 cash to Cove Company. The one-year note carried a 5% rate of interest. Which of the following shows how the loan will affect Shelter's financial statements on November 1, Year 1? A. B. C. D. Cash -4,000 -4,000 -4,000 -4,000 Multiple Choice O Assets O O Net + Receivable = Payable + 4,000 ΝΑ 4,000 ΝΑ Option A Option C Option D Option B Balance Sheet =Liabilities + Stockholders' Equity Accounts Common Retained Stock + Earnings ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ 4,000 -4,000 ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ Revenue ΝΑ ΝΑ ΝΑ ΝΑ Income Statement Expense = Net Income ΝΑ ΝΑ ΝΑ ΝΑ NA ΝΑ ΝΑ ΝΑ Statement of Cash Flows -4,000 IA -4,000 OA 4,000 IA -4,000 OA

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...

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