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Comfy Home started its business in January 2014. The company recorded a net loss of $9,000 for the second half of 2014. No other changes

Comfy Home started its business in January 2014. The company recorded a net loss of $9,000 for the second half of 2014. No other changes to owners' equity (e.g. capital contributions or dividends) were recorded during this period. Which of the following statements is certainly true with regards to the net loss and its impact on the financial statements for the six-month period ending December 31, 2014? (Please note that it is possible to have a negative balance in the Retained Earnings account.)

A. Comfy Home will record a debit to retained earnings in the amount of $9,000.

B.Comfy Home will record a credit to retained earnings in the amount of $9,000.

C.Since there are no changes to owners' equity apart from the net loss, liabilities will increase.

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