An adjusting entry recorded June salary expense that will be paid in July. Which statement best describes the effect of this adjusting entry on the company’s accounting equation?
a. Assets are not affected, liabilities are increased, and stockholders’ equity is decreased.
b. Assets are not affected, liabilities are increased, and stockholders’ equity is increased.
c. Assets are decreased, liabilities are not affected, and stockholders’ equity is decreased.
d. Assets are decreased, liabilities are increased, and stockholders’ equity is decreased.