The owner of a firm had capital of $170,000 on January 1, 2019, and made withdrawals of $96,000 during 2019. The business earned a net income of $90,000 for the year.1. What amount of capital was shown as of December 31, 2019, on the statement of owner's equity?2. How much was the increase or decrease in capital for the year?
What will be an ideal response?
1. $164,000; 2. $6,000 decrease
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Castillo Services paid K. Castillo, the sole shareholder of Castillo Services, $6800 in dividends during the current year. The entry to close the dividends account at the end of the year is:
A. Debit Dividends $6800; credit Cash, $6800 B. Debit Dividends $6800; credit Retained earnings $6800 C. Debit Retained earnings $6800; credit Dividends $6800 D. Debit Income Summary $6800; credit Retained earnings $6800 E. Debit Retained earnings $6800; credit Salary Expense $6800
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a. may be written or spoken, verbal ,or nonverbal. b. tells the listener whether the message is understood. c. may be given in response to a direct request for it. d. all of these choices.
An expert witness is a person who gives testimony about a subject of which the witnesshas personal knowledge
a. True b. False
Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions) 1. Acquired $3900 cash from issuing common stock. 2. Borrowed $2650 from a bank. 3. Earned $3550 of revenues. 4. Incurred $2490 in expenses. 5. Paid dividends of $490. Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions) 1. Acquired an additional $950 cash from the issue of common stock. 2. Repaid $1615 of its debt to the bank. 3. Earned revenues, $4950. 4. Incurred expenses of $2930. 5. Paid dividends of $1180. What was the amount of retained earnings that will be reported on Lexington's balance sheet at the end of Year 1?
A. $1060. B. $570. C. $3060. D. $3550.