Dynamic Software,Inc.invests excess cash of $100,000 in corporate bonds on March 30,2019.The bonds mature 20 years from the date of purchase.Dynamic plans to hold the bonds until maturity and has the ability to do so.How does the March 30,2019 transaction affect the accounting equation?

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The purchase of corporate bonds by Dynamic Software, Inc. does not directly affect any of the company's liabilities or equity. However, it will increase the company's long-term assets as they now hold corporate bonds. Since Dynamic plans to hold the bonds until maturity, the transaction will not cause any immediate changes in the accounting equation, and therefore, the total assets will remain unchanged.