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irinina [24]
3 years ago
15

Alpha company has assets of $602,000, liabilities of $251,000, and equity of $351,000. it buys office equipment on credit for $7

6,000. what would be the effects of this transaction on the accounting equation?
Mathematics
2 answers:
ipn [44]3 years ago
3 0
As we know assets = liabilities + equity

In this case assets would be increased by $76,000 and the liabilities would be increased by $76,000

Did I answer your question, or did you mean something else?
Simora [160]3 years ago
3 0

Answer:

Assets and liabilities both would increase by $76,000

Step-by-step explanation:

Alpha company has assets of $602,000

Liabilities of $251,000

and equity of $351,000

It buys office equipment on credit for $76,000.

Hence, assets would increase by $76,000 since, the payment has not been done it is on credit therefore, liabilities would also increase by $76,000

Now the Alpha company has assets of $602,000 + 76,000 = $678,000

and liabilities of $251,000 + $76,000 = $327,000

Assets and liabilities both would increase by $76,000

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