Question
On October 1, 2012, Balkan, Inc. accepted from another corporation a 1-year note receivable in the amount of $15,000, with an interest rate of 6%.
On October 1, 2012, Balkan, Inc. accepted from another corporation a 1-year note receivable in the amount of $15,000, with an interest rate of 6%. How did this transaction affect Balkan's financial statements?
| Assets | = | Liab. | + | Equity | Rev. | - | Exp. | = | Net Inc. | Cash | |
| A | NA | = | NA | + | NA | NA | - | NA | = | NA | -15,000 IA |
| B | NA | = | NA | + | NA | NA | - | NA | = | NA | -15,000 FA |
| C | -15,000 | = | NA | + | -15,000 | 912 | - | 15,000 | = | -15,000 | NA |
| D | 15,000 | = | 15,000 | + | NA | NA | - | NA | = | NA | NA |
Option A
Option B
Option C
Option D
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Managerial Accounting Creating Value in a Dynamic Business Environment
Authors: Ronald Hilton, David Platt
10th edition
78025664, 978-0078025662
