Question

Kangaroo Company had a transaction that caused a $5,000 increase in both assets and total liabilities. This transaction could have been a(n) _________.a. purchase of office equipment for $5,000 cash repayment of a $5,000 bank loan b. purchase of office equipment for $12,000, paying $7,000 cash and issuing a note payable for the balance c. investment of $5,000 cash in the business by the stockholdersd. repayment of a $5,000 bank loan.

Answer 1

b. purchase of office equipment for $12,000, paying $7,000 cash and issuing a note payable for the balance

Step-by-step explanation:

a purchase of office equipment increases the total assets of the company and the issuing of a note payable for balance increases the total liabilities of the company