Indicate what impact the following adjustments have on the accounting equation, Assets = Liabilities + Equity (assume normal balances). Please indicate the type of account being impacted and dollar amount increased (+) or decreased (-).   Transaction Impact 1 Impact 2 A. Prepaid Insurance adjusted from $5,000 to $3,600     B. Interest Payable adjusted from $5,300 to $6,800     C. Unearned revenue adjusted from $18,500 to $6,300     D. Supplies account balance $500, actual count $220

Question

Indicate what impact the following adjustments have on the accounting equation, Assets = Liabilities + Equity (assume normal balances). Please indicate the type of account being impacted and dollar amount increased (+) or decreased (-).

 

Transaction

Impact 1

Impact 2

A. Prepaid Insurance adjusted from $5,000 to $3,600

 

 

B. Interest Payable adjusted from $5,300 to $6,800

 

 

C. Unearned revenue adjusted from $18,500 to $6,300

 

 

D. Supplies account balance $500, actual count $220

 

 

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