Indicate if the following transaction from Torte Baking Company increases or decreases assets, liabilities, equity, revenue, expense, and net income. The pattern of the + and - must adhere to the balance sheet equation. Show the impact of revenue and expense on both net income and equity. If there is a + and - within one category (e.g., assets for transaction 2), then list the accounts that go up and down. Transaction (25) Record Salary Expense that will be paid later Assets ["", "", ""] Liabilities ["", "", ""] Equity ["", "", ""] Revenue ["", "", ""] Expense ["", "", ""] Net Income ["", "", ""]
Indicate if the following transaction from Torte Baking Company increases or decreases assets, liabilities, equity, revenue, expense, and net income. The pattern of the + and - must adhere to the
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Transaction |
(25) Record Salary Expense that will be paid later |
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Assets |
["", "", ""] |
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Liabilities |
["", "", ""] |
|
Equity |
["", "", ""] |
|
Revenue |
["", "", ""] |
|
Expense |
["", "", ""] |
|
Net Income |
["", "", ""] |
Accounting Equation :— Accounting Equation is Also Known As Basic Accounting Equation or Balance sheet Equation.
Accounting Equation is gives the Effect of each Transaction.
In Accounting Equation it gives a Statement where Assets is Equal To Liabilities plus Shareholders Equity
A = L + S
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