Answer:
Total assets increased by $18,000
And, equity is decreased by $18,000
Explanation:
We know that
Total assets = Total liabilities + total owners equity
This above equation is known as the accounting equation
Since in the question, it is mentioned that the transaction increased the total liabilities by $18,000 which increases the total assets by $18,000 and decreases the owner equity by $18,000 so this above equation should be equal and balanced.
