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arsen [322]
3 years ago
11

If a company uses $1,300 of its cash to purchase supplies, the effect on the accounting equation would be:

Business
1 answer:
Over [174]3 years ago
7 0

Answer:

no impact

Explanation:

The journal entry to purchase the supplies for cash

Supplies Dr $ 1,300  

   To Cash A/c  $ 1,300

(Being the purchase of supplies is recorded)

For recording this we debited the supplies as it increased the assets and credited the cash as it decreased the assets

Therefore there is no impact on the accounting equation

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