Alpha company has assets of $602,000, liabilities of $251,000, and equity of $351,000. it buys office equipment on credit for $76,000. what would be the effects of this transaction on the accounting equation?

Question

Reilly Carey

Mathematics

3 April, 19:26

Alpha company has assets of $602,000, liabilities of $251,000, and equity of $351,000. it buys office equipment on credit for $76,000. what would be the effects of this transaction on the accounting equation?

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Ricardo Cervantes · Answer 1

As we know assets = liabilities + equity

In this case assets would be increased by $76,000 and the liabilities would be increased by $76,000

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