$1.$ Provide the accounting equation.

$2.$Define$$each of the three individual components of the accounting equation. $($Do not just list, but tell me what they represent.$)$

$3.$ Prepare a simplified balance sheet $($with numbers$)$ for a hypothetical small business illustrating this accounting principle. $($This does not need to be detailed, but you should include the main categories found on a typical balance sheet and a few line items within each category. The numbers need to be subtotaled for each category and totaled for each side of the balance sheet and most importantly need to make sense from the standpoint of the accounting equation.$)$Please be sure to layout and format your balance sheet by making sure your columns line up$.$

For example, words of balance sheet need to be added:

Assets: Current Assets: Cash, Account Receivable, and Inventory $+$ Fixed Assets: Real Property, Equipment, and Less: Accumulated Depreciation $+$ Other Assets: Intellectual Property, Goodwill, and Long Term Investments $=$ Total Assets.

Liabilities: Current Liabilities: Accounts Payable, Accrued Expenses, and Short Term Notes $+$ Long Term Liabilities: Long Term Notes and Mortgages $=$ Total Liabilities $+$ Owners Equity: Common Stock and Retained Earnings $=$ Total Liabilities and Owners Equity.