1. a) State the expanded accounting equation. b) Explain the meaning of each term in the equation 2. On January 1, Orange Crates had assets of P30,000 and owner's equity of P20,000. During the year, the company had cash revenue or income of P10,000, cash expenses of P8,000, paid 3,000 to its creditors, and its owner withdrew P1,000. What are the assets, liabilities, and owner's equity at the end of the year? 3. Determine the value received and value parted with for the following transactions: Value Received Value Parted With a) Paid rent. b) Rendered professional services for cash. c) Withdrew P100 for personal service. d) Paid the balance of P350 on a typewriter previously purchased on account. e) Purchased office supplies. 4. Raymond opened the Muscles Fitness Gym in August. The Following transactions occurred during the first month of the business a) Raymond invested P100,000 in cash and 30,000 in gym equipment in the business. b) Paid P10,000 for the first month's rent. c) Purchased supplies costing P4,000 on credit. d) Purchased exercise equipment costing P25,000 for 15,000 cash and the rest on e) Recorded income for the first half of the month of P6,500 in cash and P3,500 on account. f) Paid P2,750 to a creditor on account. g) Received payment from a customer on account for P1600. h) Raymond withdrew P500 for a graduation gift. i) Paid aerobics instructor her salary, P3,000. j) Paid miscellaneous expense P1,500 K) Recorded income for the second half of the month of P5.600 in cash. Prepare a new accounting equation every time a transaction occurs. account. the exclusive use of SLU. Reproduction, storing in a retrieval system, distributing, uploading or posting online, or transmitting in any form or by mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written permission of SLU, is stricty prohibite 5. In the design of an automobile engine part, an engineer has a choice of either steel casting or an aluminum alloy casting. Either machine provides the same service. However, the steel casting weighs 8 ounces, compared with 5 ounces for the aluminum casting. Every pound of extra weight in the automobile has been assigned a penalty of $6 to account for increased fuel consumption during the life cycle of the car. The steel casting costs $3.20 per pound while the aluminum allow can be cast for $7.40 per pound. Machining cost per casting are $5.00 for steel and $4.20 for aluminum. Which material should the engineer select, and what is the difference in unit costs? 1 pound = 16 ounce