Answer: Assets decrease $69,750 and liabilities increase $25,250
Explanation:
Based on the scenario in the question, Decrease in assets will be calculated as:
= $95,000 - $12,000 - $7,250 - $6,000 = $69,750
Increase in liabilities will be calculated as:
= $12,000 + $7,250 + $6,000
= $25,250
The effect on assets and liabilities from this transaction is that assets decrease $69,750 and liabilities increase by $25,250
