Question
Dana starts her business on July 1 with a $30,000 cash investment. In the first two months she earns cash revenues of $9,000. She purchases
Dana starts her business on July 1 with a $30,000 cash investment. In the first two months she earns cash revenues of $9,000. She purchases $2,500 of equipment and $200 of office supplies, which will be paid for in September. During the first two months, Dana pays $3,000 in rent expenses and $2,500 in salaries. At the end of the two months what are her assets, liabilities, and owners equity?
Her assets are $36,200, her liabilities are $8,200, and her owners equity is $28,000.
Her assets are $36,200, her liabilities are $2,700, and her owners equity is $33,500.
Her assets are $33,500, her liabilities are $2,700, and her owners equity is $30,800.
Her assets are $41,700, her liabilities are $8,200, and her owners equity is $33,500.
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