2.16 - $75,000 $79,800 $4,800 2.16 D Transactions Increases...

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2.16 A Assets= Liabilites+ Owner's Equity $350,000 $275,000 $75,000 $12,000 $12,000 $362,000 $287,000 $75,000 $19,000 $19,000 $381,000 $306,000 $75,000 $(7,000) $(7,000) $374,000 $306,000 $68,000 $50,000 $50,000 $(33,000) $(33,000) $391,000 $306,000 $85,000 $(14,000) $(14,000) $377,000 $292,000 $85,000 $- $377,000 $292,000 $85,000 $(10,200) $(1,000) $(200) $366,800 $291,000 $84,800 $(5,000) $(5,000) $361,800 $291,000 $79,800 2.16 B Sales $50,000 Total Revenue $50,000 Operating expenses $7,000 Cost of goods $33,000 Interest expense $200 Total Expenses $40,200 Revenue $50,000 Expenses $(40,200) Net income $9,800 2.16 C Beginning End Net Change Assets $350,000 $361,800 $11,800 Libilities $275,000 $282,000 $7,000 Owner's Equity
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Unformatted text preview: $75,000 $79,800 $4,800 2.16 D Transactions Increases Sales $17,000 Decreased Operating expenses $(7,000) Interest expense $(200) Dividend $(5,000) 2.16 E Interest is a liability to someone else. Dividends are giving out profits, not a libility 2.16 F Borrowed money increase cash and ALSO liability, it still has to be paid back, unlike profits 2.16 G Paying off accounts payable decreases cash and decreases accounts payable by the same The same for collecting accounts recievable: increases cash and decreases assets by the s these have no effect on net income s which are kept by the company. e amounts (equal on both sides). sam amount....
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This note was uploaded on 10/08/2008 for the course ACCOUNTING 101 taught by Professor ? during the Spring '08 term at SUNY Empire State.

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2.16 - $75,000 $79,800 $4,800 2.16 D Transactions Increases...

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