Can someone help me through question 8 please? I got the answer put cant understand it.

TRANSACTION 8. PAYMENT OF ACCOUNTS PAYABLE Softbyte SA pays its 6250 Programming News bill in cash. The company previously (in Transaction recorded the bill as an increase in Accounts Payable and a decrease in equity. Basic Analysis This cash payment "on account" decreases the asset Cash by 250 and also decreases the liability Accounts Payable by 250 Equity s Liabilities + Accounts+ Assets ShareRetained Earnings Cash + Receivable Accounts + Supplies + EquipmentPayable Capital Rev Rev.Exp.Div Equation Analysis 1,600 7,000 1,85015,000 4,700 1,950 -250 9,000 2,000 (8) -250 8,750 2,000+1,6007,000 1,600 +15,000 +4,700 1,950 19,350 19,350 Observe that the payment of a liability related to an been recorded does not affect equity. Softbyte recorded the expense (in Transac tion 5) and should not record it again. expense that has previously TRANSACTION 5. PURCHASE OF ADVERTISING ON CREDIT Softby receives a bill for 250 from Programming News for advertising on its websit postpones payment until a later date. This transaction results in an inc increase in liabilities and a decrease in equity Basic Analysis Expense ncreases 250, and equity decreases 250 due to Advertising ility Accounts Payable i Equity Liabilities + Accounts Share Assets Retained Earnings Cash + Supplies+Equipment aable Capi E9.200 1.600 1.600 15,000 1,200 tal Rev. Exp. Div Equation Analysis 1,600 15,0001,200 +250 -250 Advertising 9,200+ 1,600+ 7,000 1,850 +15,000+1,200 250 17,800 17,800 The two sides of the equation still balance at 17,800. Retained Earnings decreases when Softbyte incurs the expense. Expenses do not have to be paid in cash at the time they are incurred. When Softbyte pays at a later date, the liabil- ity Accounts Payable will decrease and the asset Cash will decrease (see Trans action 8). The cost of advertising is an expense (rather than an asset) because Softbyte has used the benefits. Advertising Expense is included in determining net income