Mune Company Recorded Journal Entries for the Declaration of $150,000

question 100

Multiple Choice

Mune Company recorded journal entries for the declaration of $150,000 of dividends, the $96,000 increase in accounts receivable for services rendered, and the purchase of equipment for $63,000. What net effect do these entries have on owners' equity?

• A) Decrease of $213,000.
• B) Decrease of $117,000.
• C) Decrease of $54,000.
• D) Increase of $33,000.

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Definitions:

Circumference

The perimeter or boundary line of a circle, often measured to understand the size or to describe the distance around it.

Bevel Gear

A type of gear where the axes of the two shafts intersect and the tooth-bearing faces of the gears themselves are conically shaped, often used in differential drives.

Addendum

The radial distance from the pitch circle of a gear to the top of the teeth.

Dedendum

The distance from the pitch circle of a gear to the bottom of the tooth groove.