Bonus Exam

If the assets of a business increased $115,000 during a period of time and its liabilities increased $80,000 during the same period, equity in the business must have: Multiple Choice Decreased $195,000. Increased $115,000. Increased $35,000. Increased $195,000. O Decreased $35,000. Aaliyah Turner opened Turner Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: 1. Aaliyah invested $14,400 cash in the business in exchange for common stock. 2. Aaliyah contributed $29,000 of photography equipment to the business in exchange for common stock. 3. The company paid $3,000 cash for an insurance policy covering the next 24 months. 4. The company received $6,600 cash for services provided during January 5. The company purchased $7,100 of office equipment on credit. 6. The company provided $3,650 of services to customers on account. 7. The company paid cash of $2,400 for monthly rent. 8. The company paid $4,000 on the office equipment purchased in transaction #5 above. 9. Paid $365 cash for January utilities. Based on this information, the amount of total stockholders' equity reported on the Balance Sheet at the end of the month would be: Multiple Choice $44,000. $50,000. $41,950. $50,885. S39,785. At the end of the current year, Leer Company reported total liabilities of $320,000 and total equity of $120,000. The company's debt ratio on the last year-end was: o 267%. o 37.5%. o 727%. o 3.67%. o $440,000