Twin Pines Co., a water distiller, acquired new bottling equipment on July 1 with a list price (fair market value) of $220,000. This transaction would be recorded as:
a) Increase in Fixed Assets and Increase in Cash
b) Decrease in Cash and Increase in Long-Term Liabilities
c) Increase in Fixed Assets and Increase in Accounts Payable
d) Decrease in Cash and Decrease in Retained Earnings
