Solution-What effect would transaction have on the

What effect would transaction have on the accounting

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Problem 1: Celery Company has assets of $150,000, liabilities of $90,000, and equity of $60,000. It buys supplies for cash $5,000. What effect would this transaction have on the accounting equation?

1) Assets, $5,000 increase, equity, $5,000 increase.

2) Assets, $5,000 increase, equity, $5,000 decrease.

3) Liabilities, $5,000 increase, equity, $5,000 decrease.

4) Assets, $5,000 decrease, equity, $5,000 decrease.

5) Assets, no effect; liabilities, no effect

Reference no: EM132728470

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What effect would transaction have on the accounting

Reference no: EM132728470

Reference no: EM132728470

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