The following question is multiple choice:

Jenn owns a cycle studio that offers indoor group fitness classes. COVID-19 forced her to reassess how she will keep her classes safe when her studio re-opens in October. On August 1, 2020, she bought $4,000 of masks on account to be paid later and $1,000 of cleaning material with cash. How do these transactions affect the balance sheet? (Assume that both masks and cleaning materials are assets.) Assets increase, liabilities increase, no effect on stockholders equity. No effect on assets, liabilities increase, no effect on stockholders equity. Assets increase, no effect on liabilities, stockholders' equity increase. Assets increase, liabilities decrease, no effect on stockholders equity