In October, your company prepays rent of $7,000 for November and December. Which of the following describes the effects of this transaction in October? Multiple Choice Liabilities decrease $7,000 and Shareholders' equity increases $7,000. There is no change to total assets, liabilities or Shareholders' equity. Assets decrease $7,000 and liabilities decrease $7,000. Assets increase $7,000 and Shareholders' equity Increases $7,000.

In October, your company prepays rent of $7,000 for November and December. Which of the following describes the effects of this transaction in October? Multiple Choice Liabilities decrease $7,000 and Shareholders' equity increases $7,000. There is no change to total assets, liabilities or Shareholders' equity. Assets decrease $7,000 and liabilities decrease $7,000. Assets increase $7,000 and Shareholders' equity Increases $7,000.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter3: Basic Accounting Systems: Accrual Basis

Section: Chapter Questions

Problem 3.6.2P: Adjustment process and financial statements Adjustment data for Ms. Ellen’s Laundry Inc. for the...

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