Journal entries for the payment


Please assist with the given problem.

Kalt Company recorded journal entries for the payment of $50,000 of dividends, the $32,000 increase in accounts receivable for services rendered, and the purchase of equipment for $21,000. What net effect do these entries have on owners' equity?

a. Decrease of $71,000.

b. Decrease of $39,000.

c. Decrease of $18,000.

d. Increase of $11,000.

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Accounting Basics: Journal entries for the payment
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