On October 1, Year 1 Hernandez Company loaned $60,000 cash to Acosta Company. The one-year note carried a 6% rate of interest. Which of the following shows how the December 31, Year 1 recognition of accrued interest will affect Hernandez's financial statements? Assets A. 900 B. 900 C. 2,700 D. 2,700 Multiple Choice Balance Sheet Liabilities + ΝΑ OOO O Option A Option C Option D Option B ΝΑ ΝΑ ΝΑ Stockholders' Equity 900 900 2,700 2,700 Income Statement Revenue 900 900 2,700 2,700 Net Expense = Income ΝΑ 900 900 2,700 2,700 NA ΝΑ NA Statement of Cash Flows 900 IA ΝΑ 2,700 IA NA
On October 1, Year 1 Hernandez Company loaned $60,000 cash to Acosta Company. The one-year note carried a 6% rate of interest. Which of the following shows how the December 31, Year 1 recognition of accrued interest will affect Hernandez's financial statements? Assets A. 900 B. 900 C. 2,700 D. 2,700 Multiple Choice Balance Sheet Liabilities + ΝΑ OOO O Option A Option C Option D Option B ΝΑ ΝΑ ΝΑ Stockholders' Equity 900 900 2,700 2,700 Income Statement Revenue 900 900 2,700 2,700 Net Expense = Income ΝΑ 900 900 2,700 2,700 NA ΝΑ NA Statement of Cash Flows 900 IA ΝΑ 2,700 IA NA
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![On October 1, Year 1 Hernandez Company loaned $60,000 cash to Acosta Company. The one-year note carried a 6% rate of interest. Which of the following shows how the December 31, Year 1 recognition of accrued interest will affect
Hernandez's financial statements?
Assets
A. 900
B. 900
C. 2,700
D. 2,700
Balance Sheet
Liabilities +
ΝΑ
ΝΑ
ΝΑ
ΝΑ
Multiple Choice
Option A
Option C
Option D
Option B
Stockholders'
Equity
900
900
2,700
2,700
Income Statement
Revenue Expense =
900
ΝΑ
900
2,700
ΝΑ
ΝΑ
2,700
ΝΑ
Net
Income
900
900
2,700
2,700
Statement of
Cash Flows
900 IA
ΝΑ
2,700 IA
ΝΑ](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fccb668bc-10a4-4aaf-a388-7b2b8ddb3a25%2Fad9e53e5-12c5-4100-bc07-db078e651647%2F3bqfmq_processed.png&w=3840&q=75)
Transcribed Image Text:On October 1, Year 1 Hernandez Company loaned $60,000 cash to Acosta Company. The one-year note carried a 6% rate of interest. Which of the following shows how the December 31, Year 1 recognition of accrued interest will affect
Hernandez's financial statements?
Assets
A. 900
B. 900
C. 2,700
D. 2,700
Balance Sheet
Liabilities +
ΝΑ
ΝΑ
ΝΑ
ΝΑ
Multiple Choice
Option A
Option C
Option D
Option B
Stockholders'
Equity
900
900
2,700
2,700
Income Statement
Revenue Expense =
900
ΝΑ
900
2,700
ΝΑ
ΝΑ
2,700
ΝΑ
Net
Income
900
900
2,700
2,700
Statement of
Cash Flows
900 IA
ΝΑ
2,700 IA
ΝΑ
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