Question

Johna's Plant Nursery Company pays the salaries of its two employees. How will this transaction affect the accounting equation? Select all that apply.
Expenses will be decreased.Equity will be increased.Equity will be decreased.Salaries expense will be increased.

Answer 1

Answer:

Equity will be decreased.

Salaries expense will be increased.

Explanation:

As paid salaries are an expense, the total amount of salaries expense will certainly increase (no matter if it is paid or not). Since salaries expense is not a balance sheet item, it has to be represented through an item in it. Equity  will be decreased through the decrease of retained earnings (equity item), which is the result of increased expenses.

Answer 2

The salary paid to the employees has been the increase in the expense of the company. Thus, option D is correct.

Johna's Plant Nursery has been the company that has been operated commercially with the profit.

The end of the month accounting equation has been the given as the sum of the equity and the shareholder liabilities.

Salary expense in accounting equation

The salary expense has been the not included in the balance sheet of the company.

The salary paid to the employees has been the increase in the expense of the company. Thus, option D is correct.

It has not been paid from the equity of the shareholders, thus there have been no change in the equity of the shareholders.

Learn more about accounting equation, here:

https://brainly.com/question/14467641