Clark Company paid Sherman Company for merchandise with a $4,000, 60-day, 9% note dated April 1. If Clark Company pays the note at maturity, what entry should Sherman make at that time? Select one: a. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'S EQUITY REVENUE - EXPENSE Cash Notes Receivable Notes Payable Retained Earnings Interest Income Interest Expense A) +4,360 -4,000 +360 +360 b. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'S EQUITY REVENUE - EXPENSE Cash Notes Receivable Notes Payable Retained Earnings Interest Income Interest Expense B) -4,360 -4,000 -360 +360 c. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'S EQUITY REVENUE - EXPENSE Cash Notes Receivable Notes Payable Retained Earnings Interest Income Interest Expense C) +4,060 -4,000 +60 +60 d. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'S EQUITY REVENUE - EXPENSE Cash Notes Receivable Notes Payable Retained Earnings Interest Income Interest Expense D) -4,000 -3,940 -60 +60 e. None of the above
Clark Company paid Sherman Company for merchandise with a $4,000, 60-day, 9% note dated April 1. If Clark Company pays the note at maturity, what entry should Sherman make at that time? Select one: a. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'S EQUITY REVENUE - EXPENSE Cash Notes Receivable Notes Payable Retained Earnings Interest Income Interest Expense A) +4,360 -4,000 +360 +360 b. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'S EQUITY REVENUE - EXPENSE Cash Notes Receivable Notes Payable Retained Earnings Interest Income Interest Expense B) -4,360 -4,000 -360 +360 c. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'S EQUITY REVENUE - EXPENSE Cash Notes Receivable Notes Payable Retained Earnings Interest Income Interest Expense C) +4,060 -4,000 +60 +60 d. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'S EQUITY REVENUE - EXPENSE Cash Notes Receivable Notes Payable Retained Earnings Interest Income Interest Expense D) -4,000 -3,940 -60 +60 e. None of the above
Clark Company paid Sherman Company for merchandise with a $4,000, 60-day, 9% note dated April 1. If Clark Company pays the note at maturity, what entry should Sherman make at that time? Select one: a. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'S EQUITY REVENUE - EXPENSE Cash Notes Receivable Notes Payable Retained Earnings Interest Income Interest Expense A) +4,360 -4,000 +360 +360 b. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'S EQUITY REVENUE - EXPENSE Cash Notes Receivable Notes Payable Retained Earnings Interest Income Interest Expense B) -4,360 -4,000 -360 +360 c. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'S EQUITY REVENUE - EXPENSE Cash Notes Receivable Notes Payable Retained Earnings Interest Income Interest Expense C) +4,060 -4,000 +60 +60 d. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'S EQUITY REVENUE - EXPENSE Cash Notes Receivable Notes Payable Retained Earnings Interest Income Interest Expense D) -4,000 -3,940 -60 +60 e. None of the above
Clark Company paid Sherman Company for merchandise with a $4,000, 60-day, 9% note dated April 1. If Clark Company pays the note at maturity, what entry should Sherman make at that time?
Select one:
a.
BALANCE SHEET
INCOME STATEMENT
ASSETS
=
LIABILITIES
+
STOCKHOLDER'S EQUITY
REVENUE
-
EXPENSE
Cash
Notes Receivable
Notes Payable
Retained Earnings
Interest Income
Interest Expense
A)
+4,360
-4,000
+360
+360
b.
BALANCE SHEET
INCOME STATEMENT
ASSETS
=
LIABILITIES
+
STOCKHOLDER'S EQUITY
REVENUE
-
EXPENSE
Cash
Notes Receivable
Notes Payable
Retained Earnings
Interest Income
Interest Expense
B)
-4,360
-4,000
-360
+360
c.
BALANCE SHEET
INCOME STATEMENT
ASSETS
=
LIABILITIES
+
STOCKHOLDER'S EQUITY
REVENUE
-
EXPENSE
Cash
Notes Receivable
Notes Payable
Retained Earnings
Interest Income
Interest Expense
C)
+4,060
-4,000
+60
+60
d.
BALANCE SHEET
INCOME STATEMENT
ASSETS
=
LIABILITIES
+
STOCKHOLDER'S EQUITY
REVENUE
-
EXPENSE
Cash
Notes Receivable
Notes Payable
Retained Earnings
Interest Income
Interest Expense
D)
-4,000
-3,940
-60
+60
e. None of the above
Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.
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