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Question 6 10 pts Stannous Company earns $2,000 of revenue on account in Year 1. Cash collections of receivables amount to $1,800 in Year 1
Question 6 10 pts Stannous Company earns $2,000 of revenue on account in Year 1. Cash collections of receivables amount to $1,800 in Year 1 with the remainder being collected in Year 2. Which of the following shows how these events will affect the company's accounting equation when cash is collected in Year 1? Assets Liabilities + Stockholders' Equity Accounts Accounts Common Retained Cash + Receivable Payable Stock Earnings 2,000 (2,000) Assets = Liabilities + Stockholders' Equity Accounts Accounts Common Retained Cash + Receivable Payable Stock Earnings 1,800 1,800 Assets Liabilities + Stockholders' Equity Accounts Accounts Common Retained Cash + Receivable Payable Stock Earnings 1,800 (1,800) O Assets Liabilities + Stockholders' Equity Accounts Accounts Common Retained Cash + Receivable Payable Stock Earnings 200 200
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