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

Question

Quizplus · Accepted Answer

C) Calculations: $4,000 - $500 - $800 = $2,700

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