Al dunn bakery bought a new oven for $1,380. al paid $300 as a cash down payment and will pay the balance in 30 days. total assets increased by $1,080. true or false a. true b. false

The answer would be true. If we are going to journal this entry, we will have:
debit
equipment 1380
credit
accounts payable 1080
cash 300

We received an equipment worth 1380. Since equipment is considered as asset, it will increase but our cash was an asset too, so it means that our asset decreased. So 1380 - 300 = 1080. So a total of 1080 is the increase.

The correct answer is step.