Question -
1. Smith Software began with cash of $11,000. Smith then bought supplies for $2,400 on account. Separately, Smith paid $5,500 for a computer. Answer these questions.
a. How much in total assets does Smith have?
b. How much in liabilities does Smith owe?
2. Bill Hooper opened a software consulting firm that immediately paid $6,000 for a computer. Was Hooper's computer an expense of the business? If not, explain.