On May 1, 2020, TarHeel, Inc. accepted a $60,000 advance payment from a customer for services to be provided in the future. The contract requires TarHeel to perform cleaning services at each of the customer's six locations over the next six months. What is the impact on the accounting equation when TarHeel records this transaction on May 1st?

On May 1, 2020, TarHeel, Inc. accepted a $60,000 advance payment from a customer for services to be provided in the future. The contract requires TarHeel to perform cleaning services at each of the customer's six locations over the next six months. What is the impact on the accounting equation when TarHeel records this transaction on May 1st? You must provide an answer to this question before selecting "NEXT." If you skip this question it will be marked as incorrect and you will not be able to return to it later during the exam. Select one: a. Liabilities decrease and Stockholders' Equity increases b. Assets increase and Stockholders' Equity decreases c. Assets and Liabilities increase d. Assets and Liabilities decrease e. Liabilities increase and Stockholders' Equity decreases