Jordan Has the Following Assets and Liabilities Suppose That Jordan Wins $100,000 in the Lottery

question 12

Multiple Choice

Jordan has the following assets and liabilities: $$\begin{array} { l | r } \hline \text { Tuo cars } & \$ 10,000 \\\text { House } & \$ 200,000 \\\text { Mortgage } & \$ 100,000 \\\hline \text { Cash } & \$ 1,000 \\\text { Car loars } & \$ 3,000 \\\hline \text { Checkire accourtbalarce } & \$ 2,000 \\\text { Credit card balarce } & \$ 1,000\end{array}$$  
Suppose that Jordan wins $100,000 in the lottery. If he uses that money to pay off his mortgage, his wealth would ________; if he puts that money in his checking account, his wealth would ________;

• A)increase to $209,000; not change
• B)not change; increase to $207,000
• C)increase to $209,000; increase to $209,000
• D)increase to $207,000; not change

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Definitions:

Journal Entries

A record of financial transactions in accounting, documenting the debit and credit effects on specific accounts.

Adjusting Journal Entries

Journal entries made in an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Closing Journal Entries

Entries made at the end of an accounting period to transfer temporary account balances to permanent accounts and prepare for the next period.

Revenue In Advance

Income received by a company for goods or services that are to be provided in the future, also known as deferred revenue.