Phoenix Corporation recorded an adjusting entry using T-accounts as follows: Which of the following reflects how this adjustment affects the company's financial statements?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Phoenix Corporation recorded an adjusting entry using T-accounts as follows:  Which of the following reflects how this adjustment affects the company's financial statements? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

This entry would be made to record receiving interest revenue in cash. This would increase assets (cash) and increase revenue, which would increase net income and equity. It would also increase cash flows from operating activities.

Phoenix Corporation Recorded an Adjusting Entry Using T-Accounts as Follows