27. The effect on the balance sheet when the owner withdraws money from the business is: A. decrease asset bank; decrease equity. B. decrease drawings; decrease equity. C. increase drawings; increase equity. D. decrease asset bank; increase equity.

28. Calculate equity. Cash at bank $3,400; inventory $1,200; accounts receivable $2,500; accounts payable $1,700; loan from ABC bank $3,500. A. $8,900. B. $5,300. C. $1,900. D. $12,300.