Celery Company Has Assets of $150,000, Liabilities of $90,000, and Equity

Multiple Choice

Celery Company has assets of $150,000, liabilities of $90,000, and equity of $60,000. It buys supplies for cash $5,000. What effect would this transaction have on the accounting equation?

A) Assets, $5,000 increase, equity, $5,000 increase.
B) Assets, $5,000 increase, equity, $5,000 decrease.
C) Liabilities, $5,000 increase, equity, $5,000 decrease.
D) Assets, $5,000 decrease, equity, $5,000 decrease.
E) Assets, no effect; liabilities, no effect