Effect of a Purchase Order Submission on Financial Statements
On July 15, Lucky Tee, a custom apparel manufacturer, received an email confirmation that its July 10 purchase order of vinyl supplies had been received.This transaction affected the apparel company's financial statement elements as follows:
Assets and liabilities increased.
Assets and liabilities decreased.
Assets and owner’s equity increased.
Assets and owner's equity decreased.
Liabilities decreased and owner's equity increased.
Lucky Tee's financial statement elements were not impacted by this transaction.