Peterson Corporation Recorded an Adjusting Entry Using T-Accounts as Follows $\begin{array}{cc}\text {Depreciation Expense }\\\hline\begin{array}{ll|l}&750& \\\end{array}\end{array}$

question 84

Multiple Choice

Peterson Corporation recorded an adjusting entry using T-accounts as follows:
$\begin{array}{cc}\text {Depreciation Expense }\\\hline\begin{array}{ll|l}&750& \\\end{array}\end{array}$
$\begin{array}{cc}\text {Accumulated Depreciation }\\\hline\begin{array}{ll|l}&&750 \\\end{array}\end{array}$
Which of the following reflects how this adjustment affects the company's financial statements?
$\begin{array}{|l|l|l|l|l|l|l|l|l|l|l|l|}\hline&&&&&&&&&&&\text { Stmt of }\\ & \text {Assets }&=& \text {Liab }&+& \text { Equity}& \text { Rev.}&-& \text {Exp. }&=& \text { Net Inc. }& \text {Cash Flows } \\\hline \mathrm{A} & + & = & + & + & \mathrm{NA} & \mathrm{NA} &-& \mathrm{NA} &=& \mathrm{NA} &+FA\\\hline \mathrm{B} & - & = & \text { NA } & + & - &NA&-&+&=&-&NA\\\hline C&+&=&NA&+&+&+&-&NA&=&+&+OA\\\hline D&-&=&-&+&NA&NA&-&+&=&-&-OA\\\hline \end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Incompetent Person

An individual legally declared unable to handle their own affairs due to mental or physical incapacity.

Guardian

A person legally appointed to manage and make decisions for someone who is unable to take care of their personal affairs, such as a minor or incapacitated individual.

Sufficient Funds

A term referring to the adequate amount of money in an account to cover drafts, checks, or transactions.

Electronic Funds Transfer Act

A U.S. law designed to protect consumers engaging in electronic transfer of funds, including ATM transactions and direct deposits.