Solved! Get answer or ask a different Question 6712
Please provide a journal entries for the following and explained step by step of the accounts that’s affected by the transactions
Jan.1 Stockholder invest $40,000 in cash in starting a real estate office operating as a corporation
Jan. 15 Real estate commissions billed to clients amount to $4,000
Please explain very detailed
1. If total liabilities decreased by $75,000 and stockholders’ equity increased by $15,000 during a period of time, then total assets must change by what amount and direction during that same period?
a. $60,000 decrease
b. $60,000 increase
c. $75,000 increase
d. $90,000 increase
2. As of January 1, 20XXX, Grandma M’s Homemade Ice Cream Shop had a balance and its retained earning account of $20,000. During the year Grandma M’s had revenue of $100,000 and expenses of $105,000. In addition the business paid cash dividends of $2,000. What is the balance in Retained Earnings at December 31, 20XX for Grandma M’s Homemade Ice Cream Shop?