Short Answer
For each of the following events, indicate the amount by which liabilities increased or decreased.
a)Owner invested cash of $20,000 and equipment valued at $10,500 into the business.
b)Purchased $600 of supplies on account.
c)Borrowed $10,000 from the bank, issuing a note payable.
d)Performed a service for $1,500 and immediately collected the cash.
e)Paid the employee salaries of $1,200 cash.
f)Purchased equipment for $550 cash.
g)Received monthly rent bill of $1,300, to be paid in the following period.
h)Performed a service on account for $2,300.
Correct Answer:

Verified
a)$0
b)$600 increase...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
b)$600 increase...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q150: ASPE is included in the CPA Canada
Q151: A business receives its bill for utilities
Q152: Audits conducted by external accountants express an
Q153: Each financial statement includes a heading giving
Q154: State whether the following accounts are
Q156: One way of increasing the equity of
Q157: What classifications of Canadian corporations are required
Q158: On the financial statements, which line item
Q159: A promise by a customer to pay
Q160: The going-concern assumption states an entity will