The Accounting Equation for Cineo Enterprises Is as Follows $$\frac { \text { Assets } } { \$ 120,000 } = \frac { \text { Liabilities } } { \$ 60,000 } + \frac { \text { Owner's Equity } } { \$ 60,000 }$$

Short Answer

The accounting equation for Cineo Enterprises is as follows: $$\frac { \text { Assets } } { \$ 120,000 } = \frac { \text { Liabilities } } { \$ 60,000 } + \frac { \text { Owner's Equity } } { \$ 60,000 }$$ If Cineo purchases office equipment on account for $15000 the accounting equation will change to $\begin{array} { l } &\underline { \text { Assets }} & \underline { \text { Liabilities } } &\underline{ \text { Owner's Equity } } \\\end{array}$
A) $\begin{array} { l } \$ 120,000 = \$ 60,000 + \$ 60,000 \\\end{array}$
B) $\begin{array} { l } \$ 135,000 = \$ 60,000 + \$ 75,000 \\\end{array}$
C) $\begin{array} { l } \$ 135,000 = \$ 67,500 + \$ 67,500 \\\end{array}$
D) $\begin{array} { l } \$ 135,000 = \$ 75,000 + \$ 60,000\end{array}$