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Peterson Corporation Recorded an Adjusting Entry Using T-Accounts as Follows Depreciation Expense 750\begin{array}{cc}\text {Depreciation Expense }\\\hline\begin{array}{ll|l}&750& \\\end{array}\end{array}

Question 61

Multiple Choice

Peterson Corporation recorded an adjusting entry using T-accounts as follows:
Depreciation Expense 750\begin{array}{cc}\text {Depreciation Expense }\\\hline\begin{array}{ll|l}&750& \\\end{array}\end{array}
Accumulated Depreciation 750\begin{array}{cc}\text {Accumulated Depreciation }\\\hline\begin{array}{ll|l}&&750 \\\end{array}\end{array}
Which of the following reflects how this adjustment affects the company's financial statements?
 Stmt of Assets =Liab + Equity Rev.Exp. = Net Inc. Cash Flows A+=++NANANA=NA+FAB= NA +NA+=NAC+=NA+++NA=++OAD=+NANA+=OA\begin{array}{|l|l|l|l|l|l|l|l|l|l|l|l|}\hline&&&&&&&&&&&\text { Stmt of }\\ & \text {Assets }&=& \text {Liab }&+& \text { Equity}& \text { Rev.}&-& \text {Exp. }&=& \text { Net Inc. }& \text {Cash Flows } \\\hline \mathrm{A} & + & = & + & + & \mathrm{NA} & \mathrm{NA} &-& \mathrm{NA} &=& \mathrm{NA} &+FA\\\hline \mathrm{B} & - & = & \text { NA } & + & - &NA&-&+&=&-&NA\\\hline C&+&=&NA&+&+&+&-&NA&=&+&+OA\\\hline D&-&=&-&+&NA&NA&-&+&=&-&-OA\\\hline \end{array}


A) Option A
B) Option B
C) Option C
D) Option D

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