Sam's Snow Removal Received $500 at the Beginning of the Winter

Multiple Choice

Sam's Snow Removal received $500 at the beginning of the winter to cover the fees for the entire winter for cleaning a customer's driveway while they went to Florida for the season.What is the effect of this transaction on the accounting equation?

A) Assets increases by $500 and owners' equity increases by $500.
B) Assets increases by $500 and liabilities increases by $500.
C) Liabilities increases by $500 and owners' equity increases by $500.
D) The increase and decrease in assets offset each other.