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At the beginning of the month, a company purchased a new truck for $135,000, paying $63,000 cash and agreeing to pay the balance over 12
At the beginning of the month, a company purchased a new truck for $135,000, paying $63,000 cash and agreeing to pay the balance over 12 months through a no-interest financing offer provided by the car dealer. The entry to record the purchase of the truck is recorded at month-end. What would the effect of this transaction on the company's current month-end accounting equation? (Hint: First financing payment was made before current month-end.) Select one: O A. No effect on Assets; $135,000 decrease in Liabilities; $135,000 increase in Stockholders' Equity O B. $66,000 increase in Assets; $66,000 increase in Liabilities; No effect on Stockholders' Equity O C. $135,000 increase in Assets; No effect on Liabilities; $135,000 increase in Stockholders' Equity O D. No effect on Assets; $72,000 increase in Liabilities; $72,000 decrease in Stockholders' Equity
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