Use the Following Balance Sheet Equation Format to Show the Effect

question 70

Essay

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.
$$\begin{array} { | c | c | c | c | c | } \hline \text { Account name } & \text { Total assets } & \begin{array} { c } \text { Total } \\\text { liabilities }\end{array} & \begin{array} { c } \text { Paid-in } \\\text { capital }\end{array} & \begin{array} { c } \text { Retained } \\\text { Earnings }\end{array} \\\hline\end{array}$$ 1.The owners invest $42,000 in the company.
2.The company purchases equipment costing $6,000,paying $2,000 with the remainder as a note payable.
3.The company acquires inventory costing $2,500,paying $1,500 with the remainder on account.
4.Depreciation on the equipment was $200.

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Definitions:

Cognitive Dissonance

The psychological unease felt by a person who simultaneously maintains two or more conflicting beliefs, ideas, or values.

High Priority

A task, project, or issue that is deemed more important than others and thus requires immediate attention or action.

Evaluation

involves assessing or judging the value, quality, or performance of someone or something.

Instrumental Values

Values that are considered a means to an end, guiding how we achieve our terminal values or goals.