1.) On June 1, 2011, Boudreauxs Bayou Tours Company purchases a new boat that costs $90,000, from Boat World, Inc., and pays Boat World $30,000 in cash and finances the remainder with a note. What effect will this transaction have on the basic accounting equation on June 1, 2011?

(A) Assets increase by $90,000; Liabilities increase by $90,000; SE is not affected.

(B) Assets increase by $90,000; Liabilities increase by $60,000; SE increases by $30,000.

(C) Assets increase by $60,000; Liabilities increase by $60,000; SE is not affected.

(D) Assets increase by $60,000; Liabilities increase by $30,000; SE increases by $30,000.

I have the answer but I'm struggling to understand how to get there. Thanks!