Select all the apply. Simms Accountants charged a client $2,000 cash plus tax for services in...
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Select all the apply. Simms Accountants charged a client $2,000 cash plus tax for services in a state where the service sales tax rate is 6%. As a result of this event, Simms recognized $120 liability on the Balance sheet a $2.120 increase in total assets $2.000 of cash inflow $2.000 of Service Revenue zero cash flow from operating activities Select ALL that apply. Which of the following is/are true with respect to warranties? When a warranty claim is settled, the seller's equity decreases. When a warranty claim is settled, the seller's liabilities increase. Product warranties usually represent legal liabilities that must be reported in the financial statements. The amount of warranty expense is an estimate that is based on the amount of merchandise sold. A warranty obligation only occurs if a buyer purchases an extended warranty. Franklin Company issued a $40,000 note to the Mercantile Bank on August 1, Year 1. The note carried a 18month term and a 12% rate of interest. How will the adjusting entry, dated December 31. Year 1, to record accrued interest expense impact the elements of the financial statements? O Decrease assets and decrease retained earnings by $2.000 Increase liabilities and decrease equity by $2,000 O Increase liabilities and decrease equity by $1.600 O Decrease equity and increase liabilities by $3.200 Increase liabilities and decrease equity by $1,333
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Question Simms Accountant charged a client 2000 cash plus tax for services in a state where the service sales tax rate is 6 As a result of this event View the full answer
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