Answer: A) $10,000 decrease
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Net income = Revenue - Expenses = $120,000 - $70,000 = $50,000
The net change in owners equity = Net income - Withdrawals = $50,000 - $60,000 = ($10,000)
5) Ahmet's Camera Shop started the year with total assets of $80,000 and total liabilities of...
13) A business provides services to a customer to $15.000 OR following accounts will be created Which of a Cash b. Accounts Receivable C Service Revenue d. Bank b 14) A debt that a business owes to an outside party is called: a. an asset. aliability c. stockholders' equity d. revenue. 15) Which of the following is the correct accounting equation? a. Assets + Liabilities - Equity b. Assets Liabilities + Equity c. Assets + Revenues = Equity d. Assets...
8. Precision Camera Services started the year with total assets of $110,000 and total liabilities of $45,000. The company is a sole proprietorship. The revenues and the expenses for the year amounted to $120,000 and $90,000, respectively. During the year, there were no new capital contributions and the owner withdrew $50,000. What is the amount of owner's equity at the end of the year? A) $90,000 B) $120.000 C) $45.000 D) $50.000 9. Metropolitan Casting Services started the year with...
Q1-5 Multiple Choice Questions (20 points) Circle the right answer 1) Which of the following is the CORRECT accounting equation? A) Assets + Liabilities - Owners' equity B) Assets - Liabilities + Owners' equity C) Assets + Revenue - Owners' equity D) Assets + Revenue Liabilities + Expenses 2) Owner's equity is $150,000 and total liabilities are $90,000. Total assets would be: A) $300.000 B) S180,000. C) $60,000. D) $240,000 150, 900 90,000 3) A business settles a liability by...
Metropolitan Casting Services started the year with total assets of $110,000 and total liabilities of $45,000. The company is a sole proprietorship. The revenues and the expenses for the year amounted to $150,000 and $60,000, respectively. During the year, there were no new capital contributions and the owner withdrew $40,000. Calculate the amount of increase or decrease in owner's equity for the year. A. a(n) $115,000 increase B. a $50,000 increase O C. a(n) $65,000 decrease O D. a $40,000...
Problems 1 to 7 – (worth 40 Points in Total) Problem 1 (worth 5 Points) 1. 1(a) - Scott Camera Shop, a proprietorship, started the year with total assets of $80,000 and total liabilities of $40,000. During the year, the business earned revenues of $120,000 and incurred expenses of $70,000. Scott made withdrawals of $60,000. What is the amount of Scott's owner's equity at the end of the year? 1(b) - Sharon Samson starts a plumbing service, Reliable Waterworks, a...
Jimmy's Repair Shop started the year with total assets of $100,000 and total liabilities of $80,000. During the year the business recorded $210,000 in revenues, $110,000 in expenses, and dividends of $20,000. Stockholders' equity at the end of the year was a. $120,000. b. $100,000 C. $80,000. d. $90,000.
Metropolitan Casting Services started the year with total assets of $100,000 and total liabilities of $40,000. The revenues and the expenses for the year amounted to $130,000 and $80,000, respectively. During the year, the company did not issue any common stock, but it distributed dividends of $40,000. Calculate the amount of increase or decrease in stockholders' equity for the year. O A. a $60,000 decrease O B. a $40,000 increase c. a $70,000 increase OD. a $10,000 increase
Metropolitan Casting Services started the year with total assets of $ 100, 000 and total liabilities of $ 40,000. The revenues and the expenses for the year amounted to $ 140000 and $ 80,000, respectively. During the year, the company did not issue any common stock, but it distributed dividends of $ 40,000. Calculate the amount of increase or decrease in stockholders' equity for the year. A. $ 20,000 increase B. $ 60,000 decrease C.$ 40.000 increase D.$ 80,000 increase
dynamic production services started the year with total assets of $180,000 and total liabilities of $80,000. The company is a sole proprietorship. The revenues and the expenses for the year amounted to $150,000 and $75,000, respectively. During the year, there were no new capital contributions and the owner withdrew $60,000. Calculate Dynamic’s net income for the year.
dynamic production services started the year with total assets of $180,000 and total liabilities of $80,000. The company is a sole proprietorship. the revenues and the expenses for the year amounted to $150,000 and $75,000, respectively. During the year, there were no new capital contributions and the owner withdrew$60,000. Calculate Dynamic’s net income for the year.