Cool Taste Company recorded $5,000 in sales on account for the week. What effect does this transaction have on the accounting equation?

increase in assets is = 5000

and increase in stockholders' equity = $5000

Explanation:

given data

sales = $5000

solution

we know best represents the accounting equation is as

Assets = Liabilities + Stockholder Equity ... 1

assets are the resource own by the business

and here corporation refers to the total owner equity as stockholder equity

and Liabilities is right of creditor

so by sale of $5000

increase in assets is = 5000

and increase in stockholders' equity = $5000