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densk [106]
3 years ago
5

Determine the effect on the balance sheet after the following transaction.

Mathematics
2 answers:
Maslowich3 years ago
3 0
The transaction of this is
Cash. Increase by 750
sweet-ann [11.9K]3 years ago
3 0

Answer:

C. Owners equity increases by $750

Step-by-step explanation:

We are given that,

<em>The product is sold for $1500 which was purchased for $750.</em>

Since, 'Owner's equity is the difference of the assets and liabilities'.

As, the cost of the product (asset) = $750 and the selling price of the product (liabilities) = $1500

<h3>So, the difference of the price = 1500 - 750 = $750</h3>

Now, the difference being positive implies that the equity increases by $750.

Thus, the correct option is given by,

<h3>C. Owners equity increases by $750</h3>
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