A Company Purchased $7,000 of Supplies and Testing Equipment on Credit.Enter

question 215

Essay

A company purchased $7,000 of supplies and testing equipment on credit.Enter the appropriate amounts for this transaction into the accounting equation format shown below:
$$\begin{array} { | c | c | c | } \hline \text { Assets } = & \text { Liabilities } + & \text { Equity } \\\hline & & \\\hline\end{array}$$

---

Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.

Cash Dividend Payments

Distributions of profit made by a corporation to its shareholders in the form of cash.

Price Appreciation

The increase in the market value of an asset over time, often resulting from economic factors, demand, and market conditions.

Savings Banks

Financial institutions primarily engaged in accepting savings deposits and paying interest to depositors.