Michael Barry, Attorney, began the year with total assets of $126,000, liabilities of $74,000, and owner”s equity of $52,000. During the year the business earned revenue of
$110,000 and paid expenses of $33,000. Barry also withdrew cash of $69,000. How would Michael Barry record expenses paid of $33,000?
|
a. Cash |
33,000 |
||
|
Expenses |
33,000 |
||
|
b. Accounts payable |
33,000 |
||
|
Cash |
33,000 |
||
|
c. Expenses |
33,000 |
||
|
Accounts payable |
33,000 |
||
|
d. Expenses |
33,000 |
||
|
Cash |
33,000 |
Answers are given after Apply Your Knowledge (p. 129).