Determine what effects, if any, the event had on the net income and on the balance sheet. The policy is to record prepayments into balance sheet accounts. Mar. 12 The company paid $4,200 cash to settle the accounts payable created on March 3. Determine what effects, if any, the event had on the net income and on the balance sheet. The policy is to record prepayments into balance sheet accounts. Mar. 12 The company paid $4,200 cash to settle the accounts payable created on March 3. The event The event The event The event net income because total assets. total liabilities. equity because Determine what effects, if any, the event had on the net income and on the balance sheet. The policy is to record prepayments into balance sheet accounts. Mar. 12 The company paid $4,200 cash to settle the accounts payable created on March 3. The event The event The event The event net income because total assets. total liabilities. equity because