ABC Delivery Service Had the Following Transactions in June: Earned

question 127

Multiple Choice

ABC Delivery Service had the following transactions in June: Earned $4,000 cash for services rendered; collected $2,500 from a customer "on account;" paid out $200 cash for plumbing services; received $3,500 of supplies and promised to pay one month later; paid out $1,000 in cash drawings to the owner.
-What is the combined effect on Owner's capital of the June transactions?

• A) Up $2,800
• B) Down $300
• C) Down $6,300
• D) Up $5,300

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Definitions:

Flood Areas

Regions that are prone to flooding due to their geographical location near water bodies or due to poor drainage.

Tsunamis

Large, often destructive sea waves generated primarily by earthquakes or volcanic eruptions beneath the ocean floor.

Deep Water

Refers to parts of the ocean that are far from land and very deep, often considered to be depths exceeding 200 meters.

Strike-Slip Fault

A type of fault where two blocks of the Earth's crust slide past one another in a horizontal direction, with little to no vertical movement.