The effect on the accounting equation of the business buying office equipment worth $700, paying $350 cash andowing $350 to be paid in 30 days' time is:

1. increase the asset office equipment, increase the asset cash, decrease the liability accounts payable
2. increase the asset office equipment, decrease the asset cash,increase the liability accounts payable
3. decrease the asset office equipment, increase the asset cash, decrease the liability accounts payable
4. increase the asset office equipment, decrease the asset cash, decrease the liability accounts payable