THE FUNDAMENTAL ACCOUNTING MODEL. Using the symbols defined below, write an equation that expresses the relationship requested in each of the requirements that follow. Assume that, except for paying dividends, the owners of the firm neither contribute amounts to the firm nor withdraw amounts from the firm during the year.

A = Total assets at the beginning of the period A’ = Total assets at the end of the period L = Total liabilities at the beginning of the period L’ = Total liabilities at the end of the period E = Equity at the beginning of the period E’ = Equity at the end of the period D = Dividends for the period I = Net income for the period R = Revenue X = Expenses REQUIRED:

1. Write an equation that expresses the relationship among amounts reported for assets, liabilities, and equity on a balance sheet.

2. Write an equation that expresses the relationship among amounts reported for reyenue, expense, and net income on an income statement.

3. Write an equation that expresses the relationship between equity on the beginningof-the-year balance sheet and equity on the end-of-the-year balance sheet.