Use the following balance sheet equation format to show the effect of the following transactions.
- Write the account names that will be used for each transaction.
- Account name Total assets Total liabilities Paid-in capital Retained Earnings The owners invest $50,000 in the company.
- The company purchases equipment costing $7,000 paying $3,000 with the remainder as a note payable.
- The company acquires inventory costing $4,500, paying $2,500 with the remainder on account.
- Depreciation on the equipment was $200.