Park, Inc purchased merchandise from Jay Zee Music Company on June 5, 2015 . The goods were shipped the same day. The merchandise's selling price was $15,000 . The credit terms were 1/10, n/30 . The shipping terms were FOB shipping point. Park received the merchandise on June 10, 2015 . Park paid the amount due on June 13, 2015. Park uses the periodic inventory system. What effect does recording
the purchase of merchandise on June 5, 2015 have on Park's accounting equation?
a. Assets and liabilities increase.
b. Liabilities increase and stockholders' equity decreases.
c. Assets and stockholders' equity increase.
d. Liabilities and stockholders' equity decrease.
b
You might also like to view...
Which of the following statements about hypotheses is false?
a. If the null hypothesis is rejected, we conclude that the variables are not related b. Researchers always test the null hypothesis. c. The alternative hypothesis states that there is a relationship between variables d. A null hypothesis refers to a population parameter e. A null hypothesis is developed so that its rejection leads to an acceptance of the alternative hypothesis
The first passage in the career crossroads model is managing others
Indicate whether the statement is true or false