Problem - Mrs. Harris, the owner, purchases store supplies for $3,100, paying 20% of the amount due in cash and agreeing to pay the balance at a later date.
Required: What is the effect of this transaction on individual asset accounts, individual liability accounts, and the Owner's Equity account?
Check all that apply.
An asset account increases.
An asset account decreases.
A liability account increases.
A liability account decreases.
Owner's Equity increases.
Owner's Equity decreases.