The Youngstown Company recorded the following adjustment in general journal format:

Which of the following choices accurately reflects how this event would affect the company's financial statements?

Question

The Youngstown Company recorded the following adjustment in general journal format:

Which of the following choices accurately reflects how this event would affect the company's financial statements?

Quizplus · Accepted Answer

The debit to supplies expense increases that expense account,which decreases stockholders' equity (retained earnings)and the credit to supplies decreases that asset account.As is the case with all adjusting entries,it does not affect cash flows.

The Youngstown Company Recorded the Following Adjustment in General Journal