25.A business purchases $500 of office supplies on account. What is the effect on the accounting equation? A) Office Supplies increase and Cash decreases B) Office Supplies increase and Accounts Payable increase C) Office Supplies increase and Accounts Payable decrease D) Total assets increase and total liabilities decrease 26.A business makes a payment of $1,400 on a note payable. Which of the following journal entries would be recorded? A) Cash is credited and Notes Payable is debited for $1,400. B) Notes Payable is credited and Cash is debited for $1,400. C) Cash is credited and Financing Expense is debited for $1,400. D) Cash is debited and Financing Revenue is credited for $1,400. 27. A business purchases equipment by paying $9,087