A Company Performed $8,635 of Services and Received $3,000 in Cash

Multiple Choice

A company performed $8,635 of services and received $3,000 in cash with the remaining amount to be paid in 60 days with no interest.
What would the effect of this transaction on the company's current month-end accounting equation?

A) $3,000 increase in Assets; $5,635 decrease in Liabilities; $8,635 increase in Stockholders' Equity
B) $8,635 increase in Assets; $8,635 increase in Liabilities; No effect on Stockholders' Equity
C) $5,635 increase in Assets; No effect on Liabilities; $5,635 increase in Stockholders' Equity
D) $8,635 increase in Assets; No effect on Liabilities; $8,635 increase in Stockholders' Equity