Star Ltd. has a trade receivables balance of 8,250. Star Ltd. needs to do two adjustments: Star Ltd. has received the information of that it is likely that one of its major customers does not pay. This customer represents 20% of the total amount paid in credit by customers. In addition, to reduce previous existing obligations with the suppliers, Star Ltd. has paid to suppliers 700 in cash. After considering the two journal entries related to the adjustments, which of the following statements is true?

Select one:

a. Star Ltd. increases expenses in 8,250, increases liabilities in 700 and increases assets in 1,650.

b. Star Ltd. decreases assets in 1,650 and increases expenses in 1,000

c. Star Ltd. increases expenses in 1,650, decreases assets in 2,350 and decreases liabilities in 700.

d. None of the answers is true.

Light Ltd. presents the following Equity in the Statement of Financial Position on 30/06/2018: Share Capital of 80,000 shares of 1 each and share premium of 32,000. On that date, Light Ltd. decides to obtain funding issuing 1 for 4 ordinary shares with nominal value of 1 and a price of 2. After considering the shares issue, which of the following statements is correct?

Select one:

a. The company issues 20,000 shares and share premium decreases in 20,000.

b. The company issues 20,000 shares. Share premium increases in 20,000 and share capital increases in the same amount.

c. The company decreases cash in 40,000.

d. None of the answers is true.

Cloud Ltd. borrows 1,000 from a bank. Regarding the accounting entry that Cloud Ltd. needs to record, which of the following statements is true?

Select one:

a. There is an increase in current assets and an increase in liabilities of 1,000.

b. There is a decrease in current assets and an increase in liabilities of 1,000.

c. There is an increase in non-current assets and an increase in liabilities of 1,000.

d. There is a decrease in current assets and an increase in equity of 1,000.