If a company recedes $12,000 from the stockholders to establish a corporation the effect on the accounting equation would Assets decrease $12,000 and equity decreases $ 12,000 Assets increase $12,000 and liabilities decrease $12, 000 Assets increase $12,000 and liabilities increase $12,000 Liabilities increase $12,000 and equity decreases $12,000 Assets increase $12,000 and equity increases $12, 000 Ralph Peso Consulting received its telephone bill in the amount of $300, and immediately paid it Pine's general journal entry this transaction will include a Debit to Telephone Expense for $300 Credit to Accounts Payable for $300 Debit to Cash for $300 Credit to Telephone Expense for $300 Debit to Accounts Payable for $300