Question

Nash's Trading Post, LLC purchased equipment for $1330 cash. As a result of this event, equity decreased by $1330. assets increased by $1330. total assets remained unchanged. both assets and equity decreased by $1330.

Answer 1

Answer:

Total assets remained unchanged.

Explanation:

Purchase of Equipment is a capital expenditure which increase the fixed asset of the company and decrease the cash if paid in the form of cash. Net effect of the both sides is That there is no increase in the total assets and cash in current asset decreases and Equipment in fixed asset increase so, the total assets balance will be unchanged.