The bank reconciliation for Jhumpa Co shows a 100 personal withdrawal by L. Jhumpa, the owner, using an ATM, that was not recorded. The journal entry to record this item would involve a
a. debit to Wages Expense.
b. debit to L. Jhumpa, Drawing.
c. debit to Cash.
d. none of the answers listed.
Question 2
Which equation represents an income statement?
a. Assets = liabilities + stockholders' equity.
b. Cash in cash out = net income.
c. Revenues - expenses = net income.
d. Beginning retained earnings + revenues expenses = ending retained earnings.
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