Accounting equation mode Liabilities Equity Event Assets Allowance for + Inventory uncollectible Accounts Receivable Explanantion for equity Cash + Deposit + Equipment Accumulated Depreciation Pledge Receivable Accounts Payable + Wages Payable Long-Term Note Payable Capital + $ $ -100,000 $ 35,000 $ 15,000 B c D E F G Hi No entry $ 100,000 $ -20,000 + $ -30,000+ S -50,000+ $ 74,000 + S -68,000 + $ 56,000 + $ $ 30,000 $ 30,000 + $ 80,000 + $ + -3,000 Hii $ -32,000 $ 74,000 Admission fees received 5,000 S -73,000 Wages expense $ 53,000 Sale of books revenue + S -32,000 Cost of books sold + $ -127,000 + $ -7,000 Interest expense + $ -60,000 Depreciation expense + S -1,000 Revenue 5,000 + $ -127,000 + $ -46,000 - $ 134,000 J -60,000 K Bal. $ 72,000 + $ S $ -1,000 -1,000 + $ -3,000 3,000 $ + $ 80,000 $ 60,000 $ -100,000 $ 15,000 $ Total assets balance Total liabilities and equity balance (-7200-3000-1000+3000+80000-60000-100000) (15000+5000-127000-46000) $ -153,000 $ 153,000 Hence, the accounting equation is satisfied. t + Assume that CM began the year with the following balances in their accounts. Account Payable $2,000 Accounts Receivable 6,000.- Buildings and Equipment, Net 550,000 Cash 80,000 Notes Payable 250,000 Net Assets 702,000 Pledges Receivable 320,000 Wages Payable 2,000+ t Based on this information and the transactions prepare: t a) An Activity Statement (operating statement) b) A comparative statement of Balance Sheet- c) Cash flow Statement