Question
Using the following key, indicate how the following transactions affect the accounting equation: A. Increase Assets and Increase SHE B. Increase Assets and Increase Liabilities
Using the following key, indicate how the following transactions affect the accounting equation:
A. Increase Assets and Increase SHE
B. Increase Assets and Increase Liabilities
C. Decrease Assets and Decrease Liabilities
D. Increase in Liabilities and Decrease in SHE
E. Decrease in Liabilities and Increase in SHE
F. No effect on the accounting equation
Scenario 1: Record cash collected for services to be performed at a later date
Scenario 2: Record monthly credit sales
Question 2. Tome Cole was reviewing his business activities at the end of the year (2017) and was analyzing his financial statements. At the beginning of the year his assets were $500,000 and liabilities were $150,000. During 2017 he made an additional investment into the company of $50,000. The net income for the year was $220,000 and dividends of $120,000 were paid. Determine the ending Stockholder's Equity as of December 31, 2017.
A. $100,000
B. $450,000
C. $620,000
D. $500,000
E. $800,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started