Sinoyianis Realty Company had the following balance sheet accounts and balances: If,$6,000 of Accounts Payable were paid in cash,what would be the balance of the Flora Sinoyianis,Capital account?

Question

Sinoyianis Realty Company had the following balance sheet accounts and balances:  If,$6,000 of Accounts Payable were paid in cash,what would be the balance of the Flora Sinoyianis,Capital account?

Quizplus · Accepted Answer

When $6,000 of Accounts Payable are paid in cash, the Accounts Payable balance decreases by $6,000 and the Cash balance decreases by $6,000. However, this transaction does not affect the balance of the Flora Sinoyianis, Capital account, since it is an equity account and not directly impacted by cash transactions. Therefore, the balance of Flora Sinoyianis, Capital account remains the same at $40,000.

Sinoyianis Realty Company Had the Following Balance Sheet Accounts and Balances