When a company buys equipment for $150,000 and pays for one third in cash and the other two thirds is financed by a note payable,which of the following are the effects on the accounting equation?

Name: When a company buys equipment for $150,000 and pays for one third in cash and the other two thirds is financed by a note payable,which of the following are the effects on the accounting equation?
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Question

Quizplus · Accepted Answer

Equipment increases $150,000 and cash decreases $50,000 for a net asset increase of $100,000.

When a Company Buys Equipment for $150,000 and Pays for One