Anisha Company had a transaction that caused a $30,000 increase in both assets and liabilities. This transaction could have been a(n):
A) Purchase of office equipment for $44,000, paying $14,000 cash and issuing a note payable for the balance
B) Investment of $30,000 cash in the business by the stockholders
C) Purchase of office equipment for $30,000 cash
D) Repayment of a $30,000 bank loan

Question

Quizplus · Accepted Answer

The purchase of office equipment for $44,000 paying $14,000 cash and issuing a note payable for the balance is the only transaction that increases both assets and liabilities by $30,000.

Anisha Company Had a Transaction That Caused a $30,000 Increase