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

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Definitions:

Supplemental Nutrition

Additional food or nutritional support provided to enhance health and dietary intake beyond basic needs.

Food-Stamp Program

A government assistance program that provides low-income individuals and families with subsidies to buy food, aiming to improve nutrition and food security.

Cash Transfer Program

A governmental policy that provides direct payments in cash to individuals or households, typically aimed at reducing poverty and boosting social welfare.

Low-Rent Public Housing

A form of government-subsidized housing intended to provide affordable accommodation to low-income individuals and families.