Grandmark Printing pays the current month's rent of $2,000 to the landlord of the building where its facilities are located.How does this transaction affect the accounting equation for Grandmark?
A) Assets would decrease $2,000 and liabilities would decrease $2,000.
B) Assets would decrease $2,000 and equity would decrease $2,000.
C) Assets would increase $2,000 and equity would increase $2,000.
D) Assets would increase $2,000 and liabilities would increase $2,000.
E) Liabilities would decrease $2,000 and equity would increase $2,000.
Correct Answer:
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