Solution: BBQ Grill received a bill of $400 from the Yumm Advertising Agency. The owner, Wayne Chang, is postponing payment of the bill until a later date. The effect on specific items in the basic accounting e

Problem

BBQ Grill received a bill of $400 from the Yumm Advertising Agency. The owner, Wayne Chang, is postponing payment of the bill until a later date. The effect on specific items in the basic accounting equation is

a. a decrease in Cash and an increase in Accounts Payable.

b. a decrease in Cash and an increase in W. Chang, Capital.

c. an increase in Accounts Payable and a decrease in W. Chang, Capital.

d. a decrease in Accounts Payable and an increase in W. Chang, Capital.