Q1)

If total liabilities increased by $10,000 and the assets increased by $10,000 during the accounting period, what is the change in the owner's equity amount?

A) No effect on owner's equity B) Decrease of $10,000 C) Increase of $20,000 D) Decrease of $40,000

Q2)

Which of the following entries records the owner taking cash for personal use?

A) Wage Expense, debit; Cash, credit B) Capital, debit; Cash, credit C) Withdrawals, debit; Cash, credit D) No entry is necessary since this is a personal transaction.

Q3)

Sally's Spices accrued and unpaid wages are $2,000. Which of the following is the required adjusting entry?

A) Debit Cash, $2,000; credit Salaries Expense, $2,000 B) Credit Salaries Expense, $2,000; debit Salaries Payable, $2,000 C) Debit Salaries Payable, $2,000; credit Cash, $2,000 D) Debit Salaries Expense, $2,000; credit Salaries Payable, $2,000

Q4)

Equipment with a cost of $590,000 has an accumulated depreciation of

$350,000. What is the book value of the equipment?

A) $306,250 O B) $240,000 C) $43,750 D) $120,000

Answer with just brief explanation(Formula) please.