Paragraph 1. Applying the accounting equation (15 points) a. Total assets of Charter Company equal $700,000 and its equity is $420,000 What is the amount of its liabilities? b. Total assets of Martin Marine equal $500,000 and its liabilities and equity amounts are equal. What is the amount of its liabilities? What is the amount of its equity? 2. Identifying Financial Statements (10 points) Indicate in which financial statement each item would most likely appear: income statement (1), balance sheet (B), statement of owner's equity (E), or statement of cash flows (CF). a. Assets b. Cash from operating activities c. Withdrawals d. Equipment e. Expenses f. Liabilities g. Net decrease (or increase) in cash h. Revenues i. Total liabilities and equity 3. Analyze debitor credit by account (10 points) Identify whether a debitor credit yields the indicated change for each of the following accounts. 1. To increase Land 2. To decrease Cash 3. To increase Fees Earned (Revenues) 4. To increase Office Expense 5. To decrease Unearned Revenue 6. To decrease Prepaid Rent 7. To increase Notes Payable 8. To decrease Accounts Receivable 9. To increase Owner, Capital 10. To increase Store Equipment