The Youngstown Company recorded the following adjustment in general journal format:
$$\begin{array} { | l | r | r | }
\hline \text { Sugplies Experse } & 500 & \
\hline \text { Sugplies } & & 500 \
\hline
\end{array}$$
Which of the following choices accurately reflects how this event would affect the company's financial statements?
$\begin{array} { | c | c | c | c | c | c | c | c | c | c | c | c | }
\hline&&&&&\text { Stk. }&&&&&&\text { Stmt of }\
&\text { Asset }&=&\text { Liab. }&+&\text { Equity }&\text { Rev. }&-&\text { Exp. }&=&\text { Net Inc. }&\text { Cash Flows }\
\hline A&-&=&+&+&NA&+&-&NA&=&+&+OA\
\hline B&-&=&NA&+&-&NA&-&+&=&-&-OA\
\hline C&-&=&NA&+&-&-&-&NA&=&-&+OA\
\hline D&-&=&NA&+&-&NA&-&+&=&-&NA\
\hline
\end{array}$

Question

The Youngstown Company recorded the following adjustment in general journal format:
$$\begin{array} { | l | r | r | } 
\hline \text { Sugplies Experse } & 500 & \
\hline \text { Sugplies } & & 500 \
\hline
\end{array}$$
Which of the following choices accurately reflects how this event would affect the company's financial statements?
$\begin{array} { | c | c | c | c | c | c | c | c | c | c | c | c | } 
\hline&&&&&\text { Stk. }&&&&&&\text { Stmt of }\
 &\text { Asset }&=&\text { Liab. }&+&\text { Equity }&\text { Rev. }&-&\text { Exp. }&=&\text { Net Inc. }&\text { Cash Flows }\
\hline A&-&=&+&+&NA&+&-&NA&=&+&+OA\
\hline B&-&=&NA&+&-&NA&-&+&=&-&-OA\
\hline C&-&=&NA&+&-&-&-&NA&=&-&+OA\
\hline D&-&=&NA&+&-&NA&-&+&=&-&NA\
\hline
\end{array}$

Quizplus · Accepted Answer

The adjustment decreases assets (Supplies) and increases expenses (Supplies Expense), which decreases net income and equity. There is no effect on liabilities or cash flows.

The Youngstown Company Recorded the Following Adjustment in General Journal Sugplies Experse 500 Sugplies 500\begin{array} { | l | r | r | } \hline \text { Sugplies Experse } & 500 & \\\hline \text { Sugplies } & & 500 \\\hline\end{array} Sugplies Experse Sugplies ​500​500​​

The Youngstown Company Recorded the Following Adjustment in General Journal $\begin{array} { | l | r | r | } \hline \text { Sugplies Experse } & 500 & \\\hline \text { Sugplies } & & 500 \\\hline\end{array}$