Answer:
Machinery asset increase by $320,750
Total asset increase by $315,000
Total liabilities increase by $315,000
Explanation:
As we know that
Accounting equation is
Total assets = Total liabilities + stockholder equity
Since the industrial veneer cutter is purchased for
= Note payable + transportation cost + installation cost
= $315,000 + $5,000 + $750
= $320,750
There is a cash outflow of $5,000 + $750 i.e $5,750 which decrease the assets
But at the same time it also increased the assets by
= $320,750 - $5,750
= $315,000
And, since there is a note payable for $315,000 which also increased the liabilities
