Fronoti stick on NOTES QUESTION 7 Paid $10,000 for the note payable signed to purchased equipment at the beginning of the month. What is the effect of this transaction on the accounting equation? MADE IN TAWAN a. increases an asset $10,000; decreases an asset $10,000. o, increases an asset $10,000; decreases a liability $10,000. c. decreases an asset $10,000; increases equity $10,000. d. decreases an asset $10,000; decreases a liability $10,000.