On the 2nd January an events company received an invoice for $2,500 from an employment agency for the hire of casual staff in December. On the 31^st January the invoice was paid. How would the balance sheet accounts be affected by the 31^st January transaction?

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The payment of the invoice would result in a decrease in the company's cash (asset) balance by $2,500, as the money is leaving the business to pay the employment agency. Additionally, this transaction would result in a decrease in the accounts payable (liability) balance by $2,500, as the company is no longer owing the employment agency for their services. There is no impact on profit and loss (owner's equity) as this is a transaction between two balance sheet accounts.

On the 2nd January an Events Company Received an Invoice