Howie Company had a transaction that had no effect on assets, liabilities, or on stockholders' equity. This transaction could have been a(n):
A) Purchase of office equipment for $74,000, paying $14,000 cash and issuing a note payable for the balance
B) Investment of $60,000 cash in the business by the stockholders
C) Purchase of office equipment for $60,000 cash
D) Repayment of a $60,000 bank loan

Question

Quizplus · Accepted Answer

The purchase of office equipment for $60,000 cash, is the only transaction that has no effect on assets, liabilities, or on stockholders' equity.

Howie Company Had a Transaction That Had No Effect on Assets