Question

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

You sell a product purchased for $750 for $1,500.00. This means:


Cash increases by $750


Cash decreases by $750


Owner’s equity increases by $750


Owner’s equity decreases by $750

Answer 1

I am going to say that option 1 should be correct cash increases by $750. Hope this helps. (ﾉ◕ヮ◕)ﾉ*:･ﾟ✧

Answer 2

Well, just take a look at your numbers - you bought something for 750 dollars, and then decided to sell it. You sold that particular item for 1500 dollars, which means that you sold it for a higher price than you bought it. To see how much you gained, just subtract those numbers:
1500 - 750 = 750
So, the correct answer is cash increases by $750.