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Alla [95]
3 years ago
10

On January 31, Jean Marie’s business receives a bill for that month’s utilities in the amount of $500. Jean sets it aside becaus

e she does not plan to pay the bill until its due date of February 15. What effect, if any, does this event have on the company’s accounting equation as of January 31?
Mathematics
1 answer:
marissa [1.9K]3 years ago
4 0

On January 31, Jean Marie’s business receives a bill for that month’s utilities in the amount of $500. Jean sets it aside because she does not plan to pay the bill until its due date of February 15. What effect, if any, does this event have on the company’s accounting equation as of January 31?

Solution: The event that Jean does not plan to pay the bill until due date of February 15 must be recorded. Recording this event would increase the liabilities and decrease equity on January 31.

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