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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

Use the Following Balance Sheet Equation Format to Show the Effect