6- If the assets of a business increased $90,000 during a period of time and its liabilities decreased $60,000 during the same period, equity in the business must have: a. Decreased $90,000. b. Decreased $90,000. c. Increased $150,000. d. Increased $60,000 Question 2: (1.5 marks) What does it mean when the accounting equation is in balance? Provide an example of a transaction that affects both sides of the equation. Question 3: (1.5 marks) Sigma Co. shows the following items: Equipment: 50,000; buildings: 500,000; accounts receivable: 6,000; accounts payable: 15,000; salaries payable: 5,000; cash: 5,000; supplies: 1,000. Instruction: What is the amount of sigma Capital? Question 4 (6 marks) Selected transactions for Mr. Ibrahim, civil engineer, in his first month of business, are as follows. 2 Jan Invested $200,000 cash in the business. 3 Billed customers $7,000 for services performed. 3 9 11 Purchased equipment for $70,000. Paid $20,000 cash, signed $50,000 note payable. Paid $2,400 for a one-year insurance policy. Purchased $3,000 office supplies (an asset) on credit. Paid $ 1,000 cash for advertising. Received $7,000 cash from customers billed on January 3. Received cash $1,500 for services. 1/3 of the service will be completed after two weeks. 16 20 25 29 Paid for the office supplies purchased on January 11. Withdrew $ 600 cash from the business for personal use. 30