question 19 at december 31 of the current year, rt payne supplies determined that the following were not…

question 19 at december 31 of the current year, rt payne supplies determined that the following were not included in the accounting records: (a) maintenance costs of $650 were incurred but not paid. (b) the use of parking spaces in the companys parking lot was provided to a neighboring company. the spaces were worth $400, and the neighboring company had not been billed as of december 31. what effect do the required adjustments have on assets and liabilities? a an increase to liabilities for $400 and no effect to assets b an increase to assets for $1,050 and no effect on liabilities c an increase to assets for $400 and a decrease to liabilities for $650 d an increase to assets for $400 and an increase to liabilities for $650

question 19 at december 31 of the current year, rt payne supplies determined that the following were not included in the accounting records: (a) maintenance costs of $650 were incurred but not paid. (b) the use of parking spaces in the companys parking lot was provided to a neighboring company. the spaces were worth $400, and the neighboring company had not been billed as of december 31. what effect do the required adjustments have on assets and liabilities? a an increase to liabilities for $400 and no effect to assets b an increase to assets for $1,050 and no effect on liabilities c an increase to assets for $400 and a decrease to liabilities for $650 d an increase to assets for $400 and an increase to liabilities for $650

Answer

Explanation:

Step1: Analyze maintenance - cost adjustment

The maintenance costs of $650 were incurred but not paid. This creates an accounts - payable liability. So, liabilities increase by $650.

Step2: Analyze parking - space adjustment

The use of parking spaces worth $400 was provided to a neighboring company but not billed. This creates an accounts - receivable asset. So, assets increase by $400.

Answer:

D. an increase to assets for $400 and an increase to liabilities for $650