Bibi Company purchased equipment for $100,000, paying half with cash and issuing a note payable for the remainder. Which of the following correctly describes the impact on each account affected in this transaction?

Increase in Cash; Increase in Equipment; Increase in Accounts Payable Decrease in Cash, Increase in Equipment; Increase in Accounts Payable

• Increase in Cash, Increase in Equipment; Decrease in Accounts Payable
• Decrease in Cash, Decrease in Equipment; Decrease in Accounts Payable