Wilson Company earned $4,000 of cash sales. Sales tax is 6%. Which of the following shows how this event would affect the company's financial statements (ignore the effects of cost of goods sold)?Assets = Liabilities +4,000240240240240a.b. 4,240C. 4,240d.4,240Multiple ChoiceBalance SheetOOption COption AOption BOption DStockholders'Equity3,7604,0004,0004,000Revenue3,7604,0004,0004,240Income StatementExpensen/an/an/an/a= Net Income3,7604,0004,0004,240Statement of Cash Flows3,760 OA4,240 OAn/a4,240 OA

Wilson Company earned $4,000 of cash sales. Sales tax is 6%. Which of the following shows how this event would affect the company's financial statements (ignore the effects of cost of goods sold)? Balance Sheet Assets a. 4,000 b. 4,240 C. 4,240 d. 4,240 Multiple Choice O O O Liabilities + 240 240 240 240 O Option C Option A Option B Option D Stockholders' Equity 3,760 4,000 4,000 4,000 Revenue 3,760 4,000 4,000 4,240 Income Statement Expense n/a n/a n/a n/a = Net Income 3,760 4,000 4,000 4,240 Statement of Cash Flows 3,760 OA 4,240 OA n/a 4,240 OA

Wilson Company earned $4,000 of cash sales. Sales tax is 6%. Which of the following shows how this event would affect the company's financial statements (ignore the effects of cost of goods sold)? Balance Sheet Assets a. 4,000 b. 4,240 C. 4,240 d. 4,240 Multiple Choice O O O Liabilities + 240 240 240 240 O Option C Option A Option B Option D Stockholders' Equity 3,760 4,000 4,000 4,000 Revenue 3,760 4,000 4,000 4,240 Income Statement Expense n/a n/a n/a n/a = Net Income 3,760 4,000 4,000 4,240 Statement of Cash Flows 3,760 OA 4,240 OA n/a 4,240 OA

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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