Brunswick borrows $50,000 cash from Third National Bank. How does this transaction affect the accounting equation for Brunswick? a. Assets increase by $50,000; liabilities increase by $50,000; no effect on equity. b. Assets increase by $50,000; no effect on liabilities; equity increases by $50,000. c. Assets increase by $50,000; liabilities decrease by $50,000; no effect on equity. d. No effect on assets; liabilities increase by $50,000; equity increases by $50,000. e. No effect on assets; liabilities increase by $50,000; equity decreases by $50,000.

Question

Brunswick borrows $50,000 cash from Third National
Bank. How does this transaction affect the accounting equation
for Brunswick? a. Assets increase by $50,000; liabilities increase by
$50,000; no effect on equity.
b. Assets increase by $50,000; no effect on liabilities;
equity
increases by $50,000.
c. Assets increase by $50,000; liabilities decrease by
$50,000; no effect on equity.
d. No effect on assets; liabilities increase by $50,000; equity
increases by $50,000.
e. No effect on assets; liabilities increase by $50,000; equity
decreases by $50,000.

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