L-ILJI lem #1 of 17 Cool Taste Company purchased $1,500 of supplies with cash. What effect does this transaction have on the accounting equation? a. $1,500 increase in assets and $1,500 increase in liabilities b. $1,500 increase in assets and $1,500 increase in stockholders' equity c. No effect on the accounting equation d. $1,500 decrease in assets and $1,500 decrease in stockholders' equity