Alpha Company has assets of $624,000, liabilities of $262,000, and equity of $362,000. It buys office equipment on credit for $87,000. What would be the effects of transaction on the accounting equation?
Multiple Choice
Assets increase by $87,000 and expenses increase by $87,000.
Assets increase by $87,000 and expenses decrease by $87,000.
Liabilities increase by $87,000 and expenses decrease by $87,000.
Assets decrease by $87,000 and expenses decrease by $87,000.