10.

An entry for a payment of $1,250 of wages owed is recorded and posted in the Wages Payable Account. The account had a $3,500 credit balance before the entry. The balance of the Wages Payable account after the entry is posted is:

Multiple Choice

• a $2,250 debit balance.

• a $4,750 credit balance.

• a $2,250 credit balance.

• a $4,750 debit balance.

12

If during the year total assets increase by $81,000 and total liabilities decrease by $19,000, by how much did owner's equity increase/decrease?

Multiple Choice

• $62,000 decrease

• $100,000 decrease

• $81,000 increase

• $100,000 increase