What is the effect on the accounting equation


During the month, Genie Car Wash pays $2,700 for the following expenses, equipment rent, $1100; employee salaries, $1200; and utilities, $400. The effect on the accounting equation is as follows: The expenses decrease Genie's cash and retained earnings. List each expense seperatly to keep track of its amount.How does it impacts the accounting equation. Make sure to identify the two accounts impacted. Why is it important to record your selected transaction?

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Accounting Basics: What is the effect on the accounting equation
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