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1. A company purchases a year's worth of supplies using cash. How does the original entry impact the accounting equation (what happens to total assets, total liabilities, and equity)? 2. Assets had a beginning balance of $40,000. Liabilities had a beginning balance of $15,000. If Assets increased by $3,000 and Liabilities decreased by $2,000, what is the ending balance in Stockholders' Equity? 3. What is the effect on the accounting equation when a company receives $1,000 deposit for work to be completed in the future? (note which account below will increase or decrease and by how much) Assets = Liabilities + Stockholders' Equity