Sibelicious Corp. buys a new photocopier for €9,000. Included in this amount is a maintenance contract for the first half year, for €300. How will this be recorded on the balance sheet?
A) € 8,700 is added to Equipment, the € 300 is not recorded on the balance sheet
B) € 9,000 is added to Equipment, and € 300 to Pre-paid Expenses
C) € 9,000 is added to Equipment, the € 300 is not recorded on the balance sheet
D) € 8,700 is added to Equipment, 300 to Pre-paid Expenses
Correct Answer:
Verified
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