Howard Company purchased $300 of supplies on account. Which of the following shows how this purchase will affect Howard's ledger accounts? Assets = Liabilities + Stockholders' Equity Cash + Supplies = Assets Cash Liabilities + + Supplies 300 = Accounts Payable 300 Stockholders' Equity Accounts Payable 300 + + Common Stock Common Stock + + Retained Earnings (300) Retained Earnings

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Howard Company purchased $300 of supplies on account. Which of the following shows how this purchase will affect
Howard's ledger accounts?
Assets = Liabilities + Stockholders' Equity
Cash + Supplies =
Assets
Cash
Liabilities +
+ Supplies =
300
Accounts
Payable
300
Stockholders' Equity
Accounts
Payable
300
+
+
Common
Stock
Common
Stock
+
+
Retained
Earnings
(300)
Retained
Earnings
Transcribed Image Text:Howard Company purchased $300 of supplies on account. Which of the following shows how this purchase will affect Howard's ledger accounts? Assets = Liabilities + Stockholders' Equity Cash + Supplies = Assets Cash Liabilities + + Supplies = 300 Accounts Payable 300 Stockholders' Equity Accounts Payable 300 + + Common Stock Common Stock + + Retained Earnings (300) Retained Earnings
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