This critical thinking question draws from diverse material Ask yourself: What makes an asset account goup? Wh makes an asset account go down? What makes a liability account go up? p 110-115 On June 30, the Boyle CPA hrm finished a nalysis for Roberts Construction and sent Robertsn nvoice for $3,500, requesting payment within 30 days That same day Llune 301, Boyle made a jounal entry to record these events that s, the invoice has been sent to the clent but Boyle has not yet been paid Below is a journal entry made by Bailey's Bakery. It involves two asset accounts and one iability account. As with any joumal entry, total debits equal total credits What is the journal entry Boyle should record on June 30 DEBIT CREDIT March 14 Equipment-oven One choice is comect. The others are blatantly false and in some cases, absurd 9,200 2,000 ,200 Cash Note payable What could this journal entry signily with regand to Baileys Service revee 3 500 Oebit Credit Service nevee 3 500 Baley's sol an oven receving $2000 sh at time of sabke The bar er stil owes Baley's $7200for tteoen Service revenue O Bailey's sold an over for $9.200,putting $2000 inthe bank and using the remaing proceeds to off an old kan Service expense 3.500 Baley's purchased a new oven couting $9 200 and pald $2.000 down Baley's still owes the vendor $7,200 for the ove Service revaue REVIEW: What is accrual accounting (sometimes called accrual-based accounting)? REVIEW: Here is a transactions "Company uses cash to pay- off a $20,000 loan at the bank Select the entry that shows how this transaction impacts the accounting equation. The principle that alows a company to use fair market values in valuing plant assets Assets . ualities + Equity its owners sharchoilders O AssetsLiabilitiesEquity The accountie stmbhat recogries revenues when eamed and expenses when incured O AssetsLisbities Eauity The accounting systmbhat recogries evesues when cash received and Assets - Liabaties. Equity expenses when cash is surrendered