Adjusting entries:

Multiple Choice

Affect only income statement accounts.

Affect only balance sheet accounts.

Affect both income statement and balance sheet accounts.

Affect cash accounts.

Affect only equity accounts.

Adjusting entries:

Multiple Choice

Affect only income statement accounts.

Affect only balance sheet accounts.

Affect both income statement and balance sheet accounts.

Affect cash accounts.

Affect only equity accounts.

Assets increase by $$10,000($the new equipment$).$

Liabilities increase by $$5,000($the loan$).$

Owner$$s Equity remains unchanged in this case, as no income or expense is involved.