Oakland Company paid $200 cash for various manufacturing overhead costs,not before recorded.How does this transaction affect the financial statements? $\begin{array}{|c|c|c|c|c|c|c|c|c|c|}
\hline {\text { Assets }} & = & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } \
\hline \begin{array}{l|c|l}
\text {Cash} &+& \text { Mfg. OH }
\end{array}\
\hline
\end{array}$

Question

Oakland Company paid $200 cash for various manufacturing overhead costs,not before recorded.How does this transaction affect the financial statements? $\begin{array}{|c|c|c|c|c|c|c|c|c|c|}
\hline {\text { Assets }} & = & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } \
\hline  \begin{array}{l|c|l}
 \text {Cash} &+& \text { Mfg. OH } 
\end{array}\
\hline
\end{array}$

Quizplus · Accepted Answer

The transaction increases the Manufacturing Overhead account (an asset) by $200 and decreases the Cash account (an asset) by $200. Since the transaction does not affect liabilities, equity, revenues, or expenses, the other accounts are not affected.

Oakland Company Paid $200 Cash for Various Manufacturing Overhead Costs,not