Accounting Equation: J 4 q 4 Assets = Liabilities + Equity + Revenue - _ Expenses T-Accounts Cash Accounts Payable Smith, Capital Coffee Sales Wages Balance SO Truck Equipment Smith, Dividends Insurance Expense Journal Entries 1/5/2022 1/5/2022 1/6/2022 1/6/2022 1/6/2022 1/6/2022 Left Right Debit Credit Economic Events AKA Transactions 1/5/2022 Sold $5,000 of merchandise to customers. Received $5,000 cash. 1/5/2022 Paid Wages of $2,000 1/6/2022 _ Paid for Insurance, $500 1/6/2022 _ Bought an esspresso machine for the business, paid cash. $1,000 1/6/2022 The owner of this company invested $3,500 in this company, depositing $3,500 into the bank account 1/6/2022 Purchased a $10,000 Truck. Paid cash downpayment of $1,000, and the balance is due in payments of $1,000/mo for the next 9 months. Instructions 1 Write the Accounting Equation in Row 2 (Assets in D2, Lia' 2 Define: Assets Liabilities Owners Equity Revenue ities in G2, Owners Equity in J2, Revenue in M2, Expenses in P2) Expenses 3. Put pluses (+) and minuses (-) in Rows 3 and 12 to indicate which side of the T-account shows an increase / decrease 4 Lable each category with 'Increase' and 'Decrease' in Row 4 5 Label each T-Account with Debit and Credit in Row 6 & 14 6 Record each Transaction in T-Accounts as Journal Entries Trial Balance Debits Credits __ Accounting BALANCE SHEET INCOME STATEMENT Equation Time Represented Pam's Coffee Company Balance Sheet January 5, 2022 Assets Cash Truck Equipment Total Assets Liabilities Accounts Payable Loans Payable Total Liabitlies Smith, Capital Retained Earnings, Profit Total Owners Equity Total Liabilites + Owners Equity $o $o So so Assets = Liabilities + Owners Equity UALS Pam's Coffee Company Income Statement January 1-5, 2022 Revenue Coffee Sales Revenue Merchandise Revenue Total Revenue Expenses Rent Expense Wages Expense Utilities Expense Auto Expense Total Expenses Net Profit Total Revenue - Expenses aka: The Bottom Line Revenue - Expenses