Emerald Corporation started operations in early 2020. It had…

Emerald Corporation started operations in early 2020. It had multiple transactions during the year that resulted in total assets increasing by $227,500 and total liabilities increasing by $280,000 during the period. What is the net effect on total owner’s equity during this period?

Pursual Inc. earned revenue by selling merchandise of $185,0…

Pursual Inc. earned revenue by selling merchandise of $185,000 collected in cash and $220,000 on account during 2021. Of the $220,000 on account, 20% was collected from customers in cash in 2021. The company incurred expenses of $235,000 and made related cash payments of $70,000 in 2021. Compute Net Income (Loss) under (a) cash basis accounting and (b) the accrual basis accounting