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Indicate what impact the following adjustments have on the accounting equation, Assets = Liabilities + Equity (assume normal balances). Impact 1 Impact 2 Prepaid Insurance adjusted from $5,000 to $3,600 Interest Payable adjusted from $5,300 to $6,800 Prepaid Insurance adjusted from $18,500 to $6,300 А. В. С. D. Supplies account balance $500, actual count $220

Indicate what impact the following adjustments have on the accounting equation, Assets = Liabilities + Equity (assume normal balances). Impact 1 Impact 2 Prepaid Insurance adjusted from $5,000 to $3,600 Interest Payable adjusted from $5,300 to $6,800 Prepaid Insurance adjusted from $18,500 to $6,300 А. В. С. D. Supplies account balance $500, actual count $220

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I'm not understanding which would be assets and equity positive or negative

 

Indicate what impact the following adjustments have on the accounting equation, Assets = Liabilities + Equity (assume normal balances). Impact 1 Impact 2 Prepaid Insurance adjusted from $5,000 to $3,600 Interest Payable adjusted from $5,300 to $6,800 Prepaid Insurance adjusted from $18,500 to $6,300 А. В. С. D. Supplies account balance $500, actual count $220 Impact 1 - assets Impact 2 Prepaid Insurance adjusted from $5,000 to $3,600 Interest Payable adjusted from $5,300 to $6,800 Prepaid Insurance adjusted from $18,500 to $6,300 Supplies account balance $500, actual count $220 + equity - equity + equity - equity А. В. + liabilities C. assets D. - assets
Transcribed Image Text:Indicate what impact the following adjustments have on the accounting equation, Assets = Liabilities + Equity (assume normal balances). Impact 1 Impact 2 Prepaid Insurance adjusted from $5,000 to $3,600 Interest Payable adjusted from $5,300 to $6,800 Prepaid Insurance adjusted from $18,500 to $6,300 А. В. С. D. Supplies account balance $500, actual count $220 Impact 1 - assets Impact 2 Prepaid Insurance adjusted from $5,000 to $3,600 Interest Payable adjusted from $5,300 to $6,800 Prepaid Insurance adjusted from $18,500 to $6,300 Supplies account balance $500, actual count $220 + equity - equity + equity - equity А. В. + liabilities C. assets D. - assets
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