If total liabilities increased by $15,000 and owner’s equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period? a. $20,000 decrease b. $20,000 increase c. $25,000 increase d. $30,000 increase
If total liabilities increased by $15,000 and owner’s equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period?
a. $20,000 decrease
b. $20,000 increase
c. $25,000 increase
d. $30,000 increase
Business documents are examined to determine the effects of transactions on the accounts.
a. Analyze each transaction
b. Enter each transaction in a journal
c. Transfer journal information to ledger accounts.
This step is called journalizing
a. Analyze each transaction
b. Enter each transaction in a journal
c. Transfer journal information to ledger accounts.
Jimmy's Car Repair Shop started the year with total assets of $270,000 and total liabilities of $180,000. During the year, the business recorded $450,000 in car repair revenues, $255,000 in expenses, and Jimmy withdrew $45,000. The net income reported by Jimmy's Car Repair Shop for the year was
a.$150,000.
b.$195,000.
c.$90,000
d.$405,000
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