For Each of the Following Transactions, Identify the Effects as Reflected

question 27

Essay

For each of the following transactions, identify the effects as reflected in the accounting equation. Use "+" to indicate an increase and "-" to indicate a decrease. Use "A", "L", and "E" to indicate assets, liabilities, and equity, respectively. Part A has been completed as an example.
$$\begin{array} {| c | l | l | l |} \hline\text { a. } & \begin{array} { l } \text { L. Chester invested \$100,000 in a sole } \\\text { proprietor ship }\end{array} & + \text { A } & + \mathrm { E } \\\hline \text { b. } & \begin{array} { l } \text { Land was purchased for \$50,000. } \\\text { A down payment of \$15,000 cash was } \\\text { made and a note was signed for the } \\\text { balance. }\end{array} & & \\\hline \text { c. } & \begin{array} { l } \text { Services were rendered to customers for } \\\text { cash } \end{array} & & \\\hline \text { d. } & \text { A building was purchased for cash } & & \\\hline \text { e. } & \text { Supplies were purchased for cash } & & \\\hline \text { f. } & \text { Paid the offee secretary's salary. } & & \\\hline \text { g. } & \begin{array} { l } \text { The amount owed on the land from Part } \\\text { b) was paid. }\end{array} & & \\\hline\end{array}$$

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Definitions:

Moral Hazard

The situation where one party is more likely to take risks because they do not bear the full consequences of their actions, often seen in the insurance and financial industries.

Opportunity Costs

The value of the next best alternative foregone as the result of making a decision.

Health Care Market

The sector of an economy that provides medical services, pharmaceuticals, and health care equipment, involving patients, providers, and payers.

Hospital Performance Records

Documentation and data that detail the effectiveness, efficiency, and quality of care provided by a hospital.