When a company buys equipment for $161,000 and pays for one half in cash and the other one half is financed by a note payable, which of the following are the effects on the accounting equation? a. Total assets increase $161,000 b. Total liabilities increase $161,000 c. Total liabilities decrease $80,500 d. Total assets increase $80,500

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
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Chapter4: The Adjustment Process
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Problem 2PB: To demonstrate the difference between cash account activity and accrual basis profits (net income),...
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When a company buys equipment for $161,000 and pays for one half in cash and the other one half is financed by a note payable, which of the following are the effects on the accounting equation?

a. Total assets increase $161,000

b. Total liabilities increase $161,000

c. Total liabilities decrease $80,500

d. Total assets increase $80,500

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