Delta Company purchased an equipment by signing a note with the bank for $20,000. Which of the following statements correctly show the effect of this transaction on the accounting equation?
a. Assets will increase by $20,000, liabilities will decrease by $20,000, and stockholders equity will remain unchanged.
b. Assets will increase by $20,000, liabilities will increase by $20,000, and stockholders' equity will remain unchanged.
c. Assets will decrease by $20,000, liabilities will increase by $20,000, and stockholders' equity will remain unchanged.
d. Liabilities will increase by $20,000, stockholders' equity will decrease by $20,000, and assets will remain unchanged.
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