Mellon Company Purchases $1,500 of Equipment from Standard Office Equipment

Multiple Choice

Mellon Company purchases $1,500 of equipment from Standard Office Equipment Inc. for cash. The effect on the components of the basic accounting equation of Mellon Company is

A) an increase in assets and liabilities.
B) a decrease in assets and liabilities.
C) no change in total assets.
D) an increase in assets and a decrease in liabilities.