1. When Leonardo Bucaycay started a business, he invested P15, 000 cash plus some land that had a fair market value of P23, 000. Also the business assumed responsibility for note payable for P18, 000 that was issued to finance the purchase of the land. In recording Bucaycays investment, the entry will consist of

Group of answer choices

One debit and one credit

Two debits and two credits

Two debits and one credit

Debits that total P38, 000 and credits that total P33, 000

2. Sexy Services pays a monthly fixed salary expense of P25, 000. Its supplies expense is P5 for every P100 of services rendered. Total supplies expense for the period is P2, 000. Sexys operating income is

Group of answer choices

P15, 000

P13, 000

P40, 000

P38, 000

3. If total liabilities increased by P4, 000, then

Group of answer choices

owner's equity must have increased by P4, 000.

assets must have increased by P4, 000, or owner's equity must have decreased by P4, 000.

assets must have decreased by P4, 000.

assets and owner's equity each increased by P2, 000.