ALEKS Question #20 Alexander Company receives their utility bill for $380 on Jul

Question

ALEKS Question #20 Alexander Company receives their utility bill for $380 on July 31. They intend to pay the bill on August 20 Required: What is the effect of this transaction on individual asset accounts, individual liability accounts, the Capital Stock account, and the Retained Earnings account? Check all that apply A liability account increases Capital Stock increases Retained Earnings incrse An asset account decreases A liablity account decreases Capial Stock decreases Retained Earnings decrease. Clear Undo H Help Next >> SCORE

Explanation / Answer

1-

A liability account increases

as outstanding utilities expenses will increase by 380

2-

retained earning decreases

as utility expense of 380 would be recognized and this will results in decrease in net income

when payment would be made in august

1-

An asset account decreases

because of payment of outstanding utility bill

2-

A liability account decreases

because of payment of outstanding utility bill

1-

A liability account increases

as outstanding utilities expenses will increase by 380

2-

retained earning decreases

as utility expense of 380 would be recognized and this will results in decrease in net income

when payment would be made in august

1-

An asset account decreases

because of payment of outstanding utility bill

2-

A liability account decreases

because of payment of outstanding utility bill

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