Johnson, Inc

Multiple Choice

Johnson, Inc.paid rent expense of $3,500 for the month of October.How are the accounts affected due to this transaction?

A) Increase in cash $3,500 and increase in retained earnings $3,500
B) Increase in cash $3,500 and decrease in retained earnings $3,500
C) Decrease in cash $3,500 and decrease in retained earnings $3,500
D) Decrease in cash $3,500 and increase in retained earnings $3,500