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.
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Account name
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Total asset
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Total liabilities
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Paid-in capital
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Retained Earnings
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a) The owners invest $50,000 in the company.
b) The company purchases equipment costing $7,000 paying $3,000 with the remainder as a note payable.a) The owners invest $50,000 in the company.
c) The company acquires inventory costing $4,500, paying $2,500 with the remainder on an account.
d) Depreciation on the equipment was $200.