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:

Schemas

Cognitive structures or frameworks that help organize and interpret information, based on previous experience, to understand and respond to new situations.

Stereotypes

Schemas that are often negative and are used to categorize complex groups of people.

Group Stereotypes

Widely held but fixed and oversimplified images or ideas of a particular type of person or thing within a group.

Perceptual Gestalt

An approach in psychology that emphasizes the organization of perception into whole forms rather than the mere aggregation of parts and segments.