Sayali Company had a transaction that caused a $50,000 increase in both assets and stockholders' equity. This transaction could have been a(n):
A) Purchase of office equipment for $64,000, paying $14,000 cash and issuing a note payable for the balance
B) Investment of $50,000 cash in the business by the stockholders
C) Purchase of office equipment for $50,000 cash
D) Repayment of a $50,000 bank loan

Question

Quizplus · Accepted Answer

The investment of $50,000 cash in the business by stockholders is the only transaction that increases both assets and stockholders' equity by $50,000.

Sayali Company Had a Transaction That Caused a $50,000 Increase