this information, which of the following shows how the recognition of the return will affect the Company's financial statements? Balance Sheet Income Statement Assets n/a (100) (100) (100) = Liabilities n/a (100) (100) (100) + Stockholders' Equity n/a n/a n/a n/a Revenue n/a n/a n/a n/a Expense n/a n/a 100 n/a = Net Income n/a n/a (100) n/a Statement o 100 Operat n n (100) Operat
this information, which of the following shows how the recognition of the return will affect the Company's financial statements? Balance Sheet Income Statement Assets n/a (100) (100) (100) = Liabilities n/a (100) (100) (100) + Stockholders' Equity n/a n/a n/a n/a Revenue n/a n/a n/a n/a Expense n/a n/a 100 n/a = Net Income n/a n/a (100) n/a Statement o 100 Operat n n (100) Operat
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:James Company experienced the following events during its first accounting period:
(1) Purchased $10,000 of inventory on account.
(2) Returned $100 of inventory purchased in Event 1.
(3) Sold the inventory for $12,000 cash.
Based on this information, which of the following shows how the recognition of the return will affect the Company's financial statements?
Balance Sheet
A.
B.
C.
D.
Assets
n/a
(100)
(100)
(100)
Multiple Choice
O
O
O
O
Option C
Option A
Option B
Option D
= Liabilities +
n/a
(100)
(100)
(100)
Stockholders'
Equity
n/a
n/a
n/a
n/a
Revenue
n/a
n/a
n/a
n/a
Income Statement
Expense
n/a
n/a
100
n/a
Net Income
n/a
n/a
(100)
n/a
Statement of Cash Flows
100 Operating Activity
n/a
n/a
(100) Operating Activity
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