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Thompson Corporation currently has assets of $160,000, liabilities of $41,000, and equity of $119,000. If Thompson would perform $6,000 of services to a client that
Thompson Corporation currently has assets of $160,000, liabilities of $41,000, and equity of $119,000. If Thompson would perform $6,000 of services to a client that had previously prepaid Thompson $26,000 in advance, then how would assets, liabilities and equity be now?
A. | Assets = $166,000; Liabilities = $41,000; Equity = $125,000 | |
B. | no change in balances | |
C. | Assets = $160,000; Liabilities = $35,000; Equity = $125,000 | |
D. | Assets = $160,000; Liabilities = $47,000; Equity = $113,000 |
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