Last month, Price Company purchased supplies on account, $5,000. Today, Price Company pays the amount that is owed.
Required: What is the effect of this transaction on individual asset accounts, individual liability accounts, the Capital Stock account, and the Retained Earnings account?
Check all that apply.
An asset account increases. An asset account decreases.
A liability account increases. A liability account decreases.
Capital Stock increases. Capital Stock decreases.
Retained Earnings increase. Retained Earnings decrease.