Help Save & Exit Submit 2 OK Taylor Company purchased $9,000 of inventory under terms...
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Help Save & Exit Submit 2 OK Taylor Company purchased $9,000 of inventory under terms FOB shipping point. Freight cost amounted to $300. The cost of inventory and freight were paid with cash. Which of the following shows how the recognition of this purchase, including freight costs if applicable, will affect Taylor's financial statements? Balance Sheet Assets Liabilities Stockholders' Equity Income St Accounts Retained Cash + Inventory - Payable Common Stock A. (9,000) Earnings Revenue 9,000 Expe n/a n/a B. n/a n/ (9,300) 9,300 n/a n/a (9,300) n/a C. (9,300) 9,300 n/a 9,3 n/a n/a n/a (9,300) n/ 9,300 n/a n/a (300) n/a 30 + + D. Multiple Choice Optionc Option A 3 point. Freight cost amounted to $300. The cost of w the recognition of this purchase, including freight Income Statement holders' Equity Retained ock + Earnings n/a (9,300) n/a (300) Net Income n/a Revenue n/a n/a n/a n/a Expense n/a 9, 300 n/a 300 (9,300) n/a (300) Statement of Cash Flows n/a n/a (9,300) ON (9,300) OA
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