AC331 Chapter 2 Selected Problem Answers1

AC331 Chapter 2 Selected Problem Answers1 - Chapter 2...

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Chapter 2 Recording Business Transactions Quick Check Answers: 1. a 3. b 5. d 7. d 9. c 2. c 4. c 6. a 8. a 10. b Explanations: 3. b. Owner’s equity is $130,000 ($50,000 + $60,000 + $200,000 – $80,000 – $100,000). 7. d. Supplies balance is $1,200 ($500 + $700). The payment of accounts payable does not affect supplies. 9. c. Ending equity is $70,000, computed as follows: Beginning owner’s equity……. . $ 50,000 Add: Net income: Revenues………………. . $110,000 Less: Expenses………. (30,000 ) Net income……………. .. 80,000 Less: Withdrawals……………, (60,000 ) Ending owner’s equity………… $ 70,000 Chapter 2 Recording Business Transactions 63
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Short Exercises (5 min.) S 2-1 Debits are increases for the following types of accounts: Assets Withdrawals Expenses Debits are decreases for these types of accounts: Liabilities Capital Revenues Credits are increases for these types of accounts: Liabilities Capital Revenues
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AC331 Chapter 2 Selected Problem Answers1 - Chapter 2...

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