Question
Delta Company purchased a delivery truck for a total cost of $15,000. Delta paid $2,000 in cash and signed a note payable for the remainder.
Delta Company purchased a delivery truck for a total cost of $15,000. Delta paid $2,000 in cash and signed a note payable for the remainder. The total effect of this transaction on the accounting equation was to:
| a. | increase assets by $15,000, increase liabilities by $13,000, and increase equity by $2,000. |
| b. | increase assets by $15,000, increase liabilities by $15,000, and have no effect on equity. |
| c. | increase assets by $13,000, increase liabilities by $15,000 and decrease equity by $2,000. |
| d. | increase assets by $13,000, increase liabilities by $13,000 and have no effect on equity. |
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Calculus Early Transcendentals
Authors: James Stewart
7th edition
538497904, 978-0538497909
