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a company purchases supplies on account for 2200. indicate the amount of increases and decreases in the accounting equation

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jafruevu

Answer:

See the explanation.

Explanation:

We know,

Account equation, asset = liabilities +owner's equity. A company purchases supplies on account for $2200.

Journal entries of this transaction are as follows:

Supplies                             debit             $2200

Accounts payable             credit             $2200

Supplies are an asset account. Supplies increase the asset side.

Accounts payable is a liability account. Accounts payable increases the liability side.

Therefore, a transaction can increase an asset and a liability side.