Question

Fisher Enterprises assets increased from $7,800 to $8,600, and liabilities decreased from $3,800 to $3,500. Assuming no additional owners' equity transactions took place, if expenses totaled $3,000, what was Fisher's revenue for the year?

		$4,100.
		$4,600.
		$3,600.
		$1,600.
		None of the above.

2.

Mary Company, with total assets of $20,000, earns $5,000 of service revenue on account.

		Total assets are still $20,000.
		Total assets are now $25,000.
		Total assets are now $15,000.
		Owners' equity is $5,000 less.
		None of the above are correct.

3.

Marg Bakery has total assets of $50,000. Baking equipment is purchased for $5,000 on account. After the purchase, total assets are:

		$55,000.
		$45,000.
		$50,000.
		$5,000.
		none of the above.

4.

When completing a bank reconciliation, a customer's check returned marked NSF should be:

		added to the balance per bank statement.
		deducted from the balance per bank statement.
		added to the balance per books.
		deducted from the balance per books.

Answer 1

1	Net increase in assets	$800	Debit balance
	Net decrease in liabilities	$300	Debit balance
	Expenses incurred	$3,000	Debit balance
	Service revenue	$4,100	Credit balance
	So Option A is correct answer
2	Total Assets will be $25,000 as Accounts receivable of $5,000 will be recorded
	So Option B is answer
3	Total Assets after purchase of Baking equipment will be $55,000($50,000+5,000)
	So Option A is answer
4	NSF checks retuned will be deducted from the balance as per books
	So Option D is answer