For Each of the Following Events, Indicate the Amount by Which

question 104

Short Answer

For each of the following events, indicate the amount by which owner's equity increased or decreased.
a)Owner invested cash of $25,000 and equipment valued at $10,500 into the business.
b)Purchased $600 of supplies on account.
c)Borrowed $10,000 from the bank, issuing a note payable.
d)Performed a service for $1,500 and immediately collected the cash.
e)Paid the employee salaries of $1,200 cash.
f)Purchased equipment for $550 cash.
g)Received monthly rent bill of $1,300, to be paid in the following month.
h)Performed a service on account for $2,300.

---

Definitions:

Price-Inelastic

Describes a situation where the demand for a product does not change significantly with a change in the product's price.

Coefficient

A constant or numerical value that precedes and multiplies a variable within an algebraic expression.

Perfectly Inelastic

A situation where demand or supply does not change in response to changes in price.

Supply

The total amount of a specific good or service that is available to consumers at a given price point and time.