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

Question

Quizplus · Accepted Answer

A) Calculations: $4,000 - $300 - $1,000 = $2,800

ABC Delivery Service Had the Following Transactions in June: Earned