Beachwood Clothing Company operates a chain of high end men's clothing stores. Recently the Company closed one of its stores and sold the equipment that was used in the store. The equipment had cost $5,000 and was sold for $6,000. Which of the following shows how the recognition of this event would affect the Company's financial statements? Balance Sheet
Income Statement Statement of
Assets Cash Flows
Cash+Equipment=Liab.+Equity Rev.+Gain-Exp.=Net Inc.
A. 6,000+(5,000)=NA+1,000 NA+1,000-NA=1,000 1,000 IA
B. 5,000+(5,000)=NA+1,000 NA+1,000-NA=1,000 6,000 OA
C. 6,000+(5,000)=NA+1,000 NA+1,000-NA=1,000 6,000 IA
D. 6,000+(6,000)=NA+NA NA+NA-NA=NA 6,000 OA