Ace Builders had the following transactions in June: Earned $4 000 'on credit;' 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 Owners' equity of the June transactions?

Question

Quizplus · Accepted Answer

The owner's equity increases by $4,000 from the earned revenue and decreases by $500 from the repair expense and $800 from the owner's drawings, resulting in a net increase of $2,700.

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