Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the assets of lee’s business increased by $40,00

The assets of Lee’s business increased by $40,000 and theliabilities increased by $5,000 during...

70.2K

Verified Solution

Question

Accounting

The assets of Lee’s business increased by $40,000 and theliabilities increased by $5,000 during the current year. If theprofit for this period was $25,000, what additional contribution orwithdrawal was made by the owner? (Assume only a withdrawal or acontribution was made).

Select one: a. Contribution $5,000 b. Drawings $5,000 c.Drawings $10,000 d. Contribution $10,000

Answer & Explanation Solved by verified expert
3.7 Ratings (355 Votes)
Solution Answer is d Contribution 10000 Working Notes This Question is based on Accounting Equation Total assets Total liabilities Equity or Capital    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

In: AccountingThe assets of Lee’s business increased by $40,000 and theliabilities increased by $5,000 during the...The assets of Lee’s business increased by $40,000 and theliabilities increased by $5,000 during the current year. If theprofit for this period was $25,000, what additional contribution orwithdrawal was made by the owner? (Assume only a withdrawal or acontribution was made).Select one: a. Contribution $5,000 b. Drawings $5,000 c.Drawings $10,000 d. Contribution $10,000

Other questions asked by students

Q

The following regression output was obtained from a study of architectural firms. The dependent variable is...

Basic Math
Q

step by step solution, please If -13 < a < -2 and 1 < b <...

Advance Math
Q

In the context of an experin means that S subjects are assigned at random to...

Biology
Q

te the density of a 3D figure any final answer ALL WORK must be shown...

Geometry
Q

If a spinner with the digits 1 6 is spun the probability of spinning a...

Geometry
Q

Un empleado recibe una tarifa por hora de $25, con tiempo y medio por todas...

Accounting
Q

Madison is a middle manager in the design departmentMatthew is a senior engineer. Joseph is...

Accounting
Q

) In fiscal 2019, Gao Zhong Corp. reported a statutory tax rate of 31% and...

Accounting
Q

Why does IAS 1 Presentation of Financial Statement set out prescribed formats for the statement...

Accounting
Q

21) Delaware Corp. prepared a master budget that included $21,360 for direct materials, $33,600 for...

Accounting
Q

During the year, Morgan makes the following donations to his church: cash of $5,500 and...

Accounting
Q

MANAGING INVENTORIES AND DEBTORS Nellie Ngubane recently became a B. Com graduate, specialising in...

Finance