Karl's Kebabs Borrowed $5000 from the Bank for Kitchen Renovations

Multiple Choice

Karl's Kebabs borrowed $5000 from the bank for kitchen renovations. The effect of this transaction on the accounting equation is:

A) Decrease assets $5000; decrease equity $5000.
B) Increase assets $5000; decrease assets $5000.
C) Increase assets $5000; increase liabilities $5000.
D) Decrease liabilities $5000; decrease assets $5000.