Question

Question 22 of 24 - / 10 View Policies Current Attempt in Progress Ruth Lewis is the new owner of Ruth's Computer Services. At the end of July 2022. her first month of ownership, Ruth is trying to prepare monthly financial statements. She has the following information for the month. 1 2. 3 At July 31. Ruth owed employees $1.276 in salaries that the company will pay in August On July 1. Ruth borrowed $23.200 from a local bank on a 10-year note. The annual interest rate is 9%. Service revenue unrecorded in July totaled $1,856. Indicate how adjustments for these three situations would affect the accounting equation by completing the following table, which includes a sample accrual for a utility bill received August 1 for services received during July 2022. + Assets No Effect Liabilities Increase Stockholders' Equity (Rev. Exp.) No Effect Increase Sample 1 v 2 3 Save for Later Attempts: 0 of 1 used Submit Answer MacBook Pro G Search or type URL # % & $ 4 2 3 5 6 7 8 9 W E R T Y .. 0 F D S G H J K

Answer 1

					Stockholder equity
	Assets	=	Liabilities	+	revenue	-	Expenses
Sample	No effect	=	Increase	+	No effect	-	Increase
1	No effect	=	Increase	+	No effect	-	Increase
2	No effect	=	Increase	+	No effect	-	Increase
3	Increase	=	No effect	+	Increase	-	No effect

1.

salaries payable is a liability and salaries expense is an expense.

2

Interest payable on note is a liability and interest expense is an expense.

3.

Service revenue earned but note recorded will increase accounts receivable and revenue.