Total Assets Are $37,500,total Liabilities Are $20,000 and Common Stock

question 86

True/False

Total assets are $37,500,total liabilities are $20,000 and common stock is $10,000;therefore,retained earnings are $7,500.

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Definitions:

Journal Entries

Records that document financial transactions in an accounting system, indicating the accounts and amounts to be debited and credited.

Bank Memos

Bank memos are notes or records created by a bank to document adjustments made to a bank account, explaining any changes or transactions.

Bank Reconciliation

A process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they are in agreement and to identify any discrepancies.

Bank Statement

A document provided by a bank, detailing the transactions in a customer's account over a specified period.