1.

At the beginning of the year, a company's balance sheet reported the following balances: Total Assets = $165,000; Total Liabilities = $81,000; and Owner's Capital = $84,000. During the year, the company reported revenues of $49,600 and expenses of $32,400. In addition, owner's withdrawals for the year totaled $21,600. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of the year would be:

• $122,800.

• $79,600.

• $4,400.

• $88,400.

• $71,200.

2.

A company purchased $10,300 of merchandise on June 15 with terms of 2/10, n/45, and FOB shipping point. The freight charge, $650, was added to the invoice amount. On June 20, it returned $1,040 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:

• $10,950.

• $9,224.

• $10,590.

• $10,690.

• $9,725.