On November 1, Year 1 Cove Company borrowed $7,000 cash from Shelter Company. The one-year note carried a 7% rate of interest.
Which of the following shows how the loan will affect Cove's financial statements on November 1, Year 1?
A) Balance Sheet Income Statement Statement of Cash Flows
Assets = Liab. + Equity Rev. - Exp. = Net Inc. (7,000) IA
/NA / NA / NA / NA / NA / NA
B) Balance Sheet Income Statement Statement of Cash Flows
Assets = Liab. + Equity Rev. - Exp. = Net Inc. (7,000) FA
/NA / NA / NA / NA / NA / NA
C) Balance Sheet Income Statement Statement of Cash Flows
Assets = Liab. + Equity Rev. - Exp. = Net Inc. 7,000 FA
/7000 / 7000 / NA / NA / NA / NA
D) Balance Sheet Income Statement Statement of Cash Flows
Assets = Liab. + Equity Rev. - Exp. = Net Inc. (7,000) IA / (7000) / (7000) / NA / NA / NA / NA
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