The Crandle Company has assets of $100,000, liabilities of $30,000, and stockholders' equity of $70,000. It paid employees $1,000 in wages.
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Question

The Crandle Company has assets of $100,000, liabilities of $30,000, and stockholders' equity of $70,000. It paid

employees $1,000 in wages. What effect would this transaction have on the accounting equation?

Group of answer choices



Assets decrease $1,000, and liabilities increase $1,000.


Both assets and stockholders' equity decrease $1,000.


Liabilities increase $1,000, and stockholders' equity decreases $1,000.


Assets stay the same, and stockholders' equity decreases $1,000.

Top Answer

Answer is Both assets and... View the full answer

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