If a company receives $11,100 from the owner to establish a proprietorship, the effect on the accounting equation would be:

Multiple Choice

Assets decrease $11,100 and equity decreases $11,100.

Assets increase $11,100 and liabilities decrease $11,100.

Assets increase $11,100 and liabilities increase $11,100.

Liabilities increase $11,100 and equity decreases $11,100.

Assets increase $11,100 and equity increases $11,100.