Enabled: Midterm Exam #$1$ i

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Echo Company has assets of $$616,000,$ liabilities of $$258,000,$ and equity of $$358,000.$ It buys office equipment on credit for $$83,000.$ What would be the effects of this transaction on the accounting equation?

Multiple Choice

Assets increase by $$83,000$ and liabilities increase by $$83,000.$

Liabilities increase by $$83,000$ and expenses decrease by $$83,000.$

Assets decrease by $$83,000$ and expenses decrease by $$83,000.$

Assets increase by $$83,000$ and expenses increase by $$83,000.$

Assets increase by $$83,000$ and expenses decrease by $$83,000.$