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?

Howard Company had a transaction that caused a $5,000 increase in both assets and total liabilities. This transaction could have been a(n):

Purchase of office equipment for $12,000, paying $7,000 cash and issuing a note payable for the balance.Investment of $5,000 cash in the business by the stockholders.
Purchase of office equipment for $5,000 cash.
Repayment of a $5,000 bank loan

Correct - Your answer is correct.

Wrong - Your answer is wrong.

Detailed Answer

Correct answer: (A)
Purchase of office equipment for $12,000, paying $7,000 cash and issuing a note payable for the balance.

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