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Problem 1: When the owner takes a draw for personal use, this will
Option 1: increase owners' equity
Option 2: decrease owners' equity
Option 3: do not affect owners' equity
Problem 2: On December 1, 2013, Geneva Jordan opened her new business with the following assets and liabilities.
Accounts Payable 1,100
Prepaid Rent 6,000
Cash 3,950
Loans Payable 15,500
Equipment 26,200
Supplies 1,250
What must total owner's equity equal in order for A = L + OE to be true?
Option 1: 37,400
Option 2: 21,900
Option 3: 20,800
Option 4: 36,300
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