If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be: A. Assets increase $4,500 and liabilities decrease $4,500. B. Equity decreases $4,500 and liabilities increase $4,500. C. Liabilities decrease $4,500 and assets increase $4,500. D. Assets increase $4,500 and liabilities increase $4,500. 6. On August 31 of the current year, the assets and liabilities of Gladstone, Inc. are as follows: Cash $30,000: Supplies, $600: Equipment, $10,000: Accounts Payable, $8,500. What is the amount of equity as of August 31 of the current year? A. $49,100. B. $32,100. C. $12,100. D. $10,900