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

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 1P: Cost of Bank Loan On March 1, Minnerly Motors obtains a business loan from a local bank. The loan is...

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