2. A company paid employee wages of $48,000 for the month. What would the effect

Question

2. A company paid employee wages of $48,000 for the month. What would the effect of this transaction on the current month's accounting equation? A) No effect on Assets; $48,000 decrease in Liabilities; $48,000 increase in Stockholders' B) $48,000 increase in Assets; $48,000 increase in' Liabilities; No effect on Stockholders C) $48,000 decrease in Assets; No effect on Liabilities; $48,000 decrease in Stockholders D) $48,000 decrease in Assets; $48,000 decrease in Liabilities; No effect on Stockholders 000.bbl2 000,0012 ( Equity Equity Equity Equity 000,012 000.0

Explanation / Answer

employee wages paid means cash decrease by $48000 and shareholder's equity decrease by $48000

so answer is C) $48000 decrease in Assets; no effect on Liabilities ; $48000 decrease in stockholder's equity

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.