Ace Builders Had the Following Transactions in June: Earned $4,000

question 29

Multiple Choice

Ace Builders had the following transactions in June: Earned $4,000 "on account;" collected $3,000 from a customer that 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 Owner's capital of the June transactions?

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

---

Definitions:

Sensation Loss

Sensation loss, or sensory loss, refers to a decrease or absence of sensation resulting from damage to the nervous system affecting one or several senses, such as touch, taste, or smell.

Pia Mater

The delicate innermost layer of the meninges, the membranes surrounding the brain and spinal cord.

Meninx

A layer of membrane covering the brain and spinal cord; refers to one of the meninges.

Periosteum

The periosteum is a dense layer of vascular connective tissue enveloping the bones except at the surfaces of the joints.