Question

> Click Submit to complete this assessment. Question 30 The Greenbush Company had the following transactions during July 7/01 Owners contribute $5,000 to start business 7101 Greenbush Company prepays first six month's rent by paying $3,000 i.e., $500 per month) 7/10 Greenbush Company purchases inventory on account. Cost of inventory: $1,000 7/31 Greenbush Company obtains $2,000 loan from bank 7/31 Greenbush Company pays cash for equipment costing $4,000 What effect did the contribution by the owners have on the basic accounting equation for Greenbush Company? A No change in assets, liabilities, or owners' equity B. Assets increased, liabilities increased, no change in owners' equity C. Assets increased, no change in liabilities, owners' equity increased D. Assets increased, no change in liabilities or owner's equity > Click Submit to complete this assessment.

Answer 1

Contribution by owners increases Assets, does not change liabilities and increases owner's Equity

Assets increased, no change in liabilities, owner's Equity increased.

Option C is correct