Impact on Impact on profit 1 Account Debit Credit current ratio margin Payroll expense 72,000 3 Accrued payroll 72,000 4 Depreciation 125,000 expense Accumulated 125,000 depreciation 7 8 Prepaid insurance 15,000 15,000 9. Insurance expense
Impact on Impact on profit 1 Account Debit Credit current ratio margin Payroll expense 72,000 3 Accrued payroll 72,000 4 Depreciation 125,000 expense Accumulated 125,000 depreciation 7 8 Prepaid insurance 15,000 15,000 9. Insurance expense
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Fill in the chart (in the photo)
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Will the following aje have a decrease, increase, or have no impact on: the current ratio and on the profit margin.
Payroll debit 72,000
Accrued payroll credit 72000
Depreciation expense debit 125000
Accumulated depreciation credit 125000
Prepaid insurance debit 15000
Insurance expense 15000

Transcribed Image Text:Impact on
Impact on profit
1
Account
Debit
Credit
current ratio
margin
Payroll expense
72,000
Accrued payroll
72,000
4
Depreciation
125,000
expense
Accumulated
125,000
depreciation
7
Prepaid insurance
15,000
9.
Insurance expense
15,000
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