Question
4.The WeBuild Construction Co. sold buildings costing $12 million for $15 million to customers in its first year of operation. The company received payments of
4.The WeBuild Construction Co. sold buildings costing $12 million for $15 million to customers in its first year of operation. The company received payments of $9.50 million for those buildings. The company's balance sheet accounts would be reflective of the following changes:
(a) Cash increased $15M; Inventory decreased $12M; Accounts Receivable increased $5.5M; Cost of Goods Sold (an expense) increased $12M.
(b) Cash increased $15M; Inventory decreased $12M; Accounts Receivable increased $5.5M.
(c) Cash decreased $15M; Inventory increased $12M; Accounts Receivable decreased $5.5M.
(d) Sales Revenue increased $15M; Inventory decreased $12M; Accounts Receivable increased $15M.
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
16th edition
978-0078111044
