Short Answer
For each of the following events, indicate the amount by which owner's equity increased or decreased.
a)Owner invested cash of $25,000 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 month.
h)Performed a service on account for $2,300.
Correct Answer:

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a)$35,500 increase
b)$0
c)$0
d...View Answer
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Correct Answer:
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b)$0
c)$0
d...
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