QUESTION 1 On September 26, the Chicago Ridge Corporation\'s managers provided $

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QUESTION 1 On September 26, the Chicago Ridge Corporation's managers provided $3,700 of services to customers for cash. How does this event affect the company's assets, liabilities, and stockholders' equity? a. Assets increase by $3,700 and liabilities increase by $3,700 b. Liabilities decrease by $3,700 and stockholders' equity increases by $3,700 c. Total assets, total liabilities, and total stockholders' equity do not change d. Assets increase by $3,700 and stockholders' equity increases by $3,700 QUESTION 2 The following information was taken from the September financial statements of the Ryan Corporation. Determine the dollar amount of resources borrowed by the company as of the end of September ssets, September 30 $640,000 $120,000 on Stock, September 30 ividends, September 1 through September 30 $20,000 Expenses, September 1 through September 30 $180,000 Liabilities, September 30 Retained Earnings, September 30 Revenues, September 1 through September 30 $290,000 $420,000 $100,000 a. $420,000 b. $110,000 c. $120,000 d. $220,000

Explanation / Answer

Question:1

solution: Answer is option d. Assets increase by $3,700 and stockholders' equity increase by $3,700. By providing services for cash, assets increases and service revenue increases the stockholders' equity.

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