11) Which of the following transactions would increase total assets? 1. Borrowed cash on a note payable, $80,000 II. Provided services on account, $10,000 III. Received cash from a customer as payment on account, $8,000 IV. Received a utility bill, $1,200 A) I and II B) I and III C) LII, and III D) All of these answers are correct. 12) Consider the following transactions: 1. Owners invested $8,000 cash to begin the business II. Provided services for cash, $6,000 III. Provided services on account, $4,000 IV. Paid cash for expenses, $7,500 How much net income did the business have? A) $ 2,500 B) $ 4,500 C) $ 6,500 D) $10,500 13) Joe Donaldson deposited $80,000 in a bank account, purchased a company for $60,000 cash (Building $40,000 and Inventory $20,000), performed services for clients for $10,000 cash, purchased supplies for $5,000 cash, and paid utilities of $2,000 cash. What is the amount of total assets? A) $80,000 B) $78,000 C) $88,000 D None of the above 14) Chunky Bags sold items for $20,000 cash using the cash basis of accounting and did not record a sale on account. This transaction should have been recorded under accrual accounting. The income statement defect of the cash basis with respect to this transaction is the failure to record an entry to which account? A) Cash B) Accounts Receivable C) Sales D) Both Accounts Receivable and Sales P 16 6 X