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The Draper Company Records these journal entries:

The Draper Company Records these journal entries:


Issue Common Stock for Cash    $40


Accrued Revenue            $12


Earned portion of Unearned Revenue    $17


Indicate the net effect of these journal entries on the following items. Indicate the dollar amount of the effect and the direction of the effect. (Example: $13 Increase, or $8 Decrease, or NO EFFECT)


a) Net Income $29 Increase

b) Total Assets $40 Increase

c) Total Liabilities $17 Decrease

d) Retained Earnings $29 Increase

e) Total Equity $69 Increase

f) Working Capital $52 Increase


Please let me know if I am any bit correct..

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