Ace Builders Had the Following Transactions in June: Earned $4

question 92

Multiple Choice

Ace Builders had the following transactions in June: Earned $4 000 'on credit;' collected $3 000 from a customer which was owed from a previous month; incurred $500 of repair expense and paid cash to the repairman; paid $1 200 to a supplier that it owed from the previous month; paid out $800 in cash drawings to the owner. What is the combined effect on Cash of the June transactions?

• A)Up $500
• B)Up $4 500
• C)Down $2 700
• D)Down $5 700

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Definitions:

Magnetism

A physical phenomenon produced by the motion of electric charge, resulting in attractive and repulsive forces between objects.

Specific Gravity

The ratio of the density of a substance to the density of freshwater.

Effervescence

The rapid escape of gas from a liquid in which it is dissolved, often observed as bubbles or fizz.

Streak Plate

A laboratory method used to identify the color of a mineral in powdered form by rubbing it on a porcelain tile.