1. The business assets total $600 and the company's owners invested $200. How much did the business borrow from the bank? A. $600 B. $400 C. $200 D. $800 2. What two things affect Retained Earnings? A. Retained Earnings and Net Income B. Net Income and Owner's Equity C. Dividends and Stockholder's Equity D. Net Income and Dividends 3 A. .95 B. 1.05 C. . 80 D. Cannot compute. Using the accounting equation below, how would you record the following two transactions as they affect assets, liabilities and stockholder's equity? Assets = Liabilities + Stockholder's Equity Cash Acct. Rec. Supplies Acct. Payable Capital Stock Fees Earned Supplies Expense 4. Company purchased supplies for $100 and paid in cash A. Accounts payable $100, Supplies $100 B. Cash ($100), Supplies $100 C. Supplies ($100), Cash ($100) D. Supplies $100, Accounts Payable $100