During 2011, Its First Year of Operations, Yaspo's Bakery Had

question 98

Multiple Choice

During 2011, its first year of operations, Yaspo's Bakery had revenues of $80,000 and expenses of $44,000.The business paid dividends of $24,000.What is the amount of equity at December 31, 2011?

• A)$0
• B)$24,000 debit
• C)$12,000 credit
• D)$36,000 credit

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Definitions:

Journal Entry

An accounting record of a business transaction, indicating the financial effects on the company's accounts.

Petty Cash

A small amount of cash on hand used for covering minor expenses in a business, such as office supplies or postage.

Accounts Receivable

Outstanding payments that clients are obligated to pay a company for received goods or services.

Various Accounts

Different types of accounts managed within accounting, including assets, liabilities, equity, expenses, and revenue accounts.