On November 1, Year 1, Shelter Company loaned $8,200 cash to…
On November 1, Year 1, Shelter Company loaned $8,200 cash to Cove Company. The one-year note carried a 7% rate of interest. Which of the following shows how the loan will affect Shelter’s financial statements on November 1, Year 1? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenues−Expenses=Net IncomeA. = + − = $ (8,200) IAB. = + − = $ (8,200) FAC.$ 8,200=$ 8,200+ − = $ 8,200 FAD.$ (8,200)=$ (8,200)+ − = $ (8,200) IA