This is Sam's first month operating his dry cleaning service. His adjusted trial balance showed a $5,000
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Question:
This is Sam's first month operating his dry cleaning service. His adjusted trial balance showed a $5,000 balance in his capital account and a $450 balance in his drawings account. He also secured a bank loan for $10,000 to purchase some used equipment. If Sam's owner's equity balance at the end of the first month was a negative amount, we could say that
Sam's net loss was greater than $15,450.
Sam's net income was less than $4,550.
the adjusted trial balance was not balanced.
Sam's net loss was greater than $4,550.
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-0470239803
5th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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