Accounting Equation Be-The-One is a motivational consulting business. At the end of its accounting period, December 31, 2012, Be-The-One has sets of $395,000 and 9 Using the accounting equation, determine the following amounts: a. Stockholders' equity as of December 31, 2012. b. Stockholders' equity as of December 31, 2013, assuming that assets decreased by $65,000 and abilities increased by $36,000 during 2013 Transactions Interstate Delivery Service is owned and operated by Katie Wyer. The following selected transactions were completed by Interstate Delivery during May: Indicate the effect of each transaction on the following accounting equation elements (Assets, Liabilities, Common Stock, Dividends, Revenue, and Expense). Also indicate the specific item within the accounting equation element that is affected. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by $18,000; Common Stock Increases by $18,000. 1. Received cash in exchange for common stock, $18,000. Element Asset Item Direction Cash Increases Common Stock Increases 2. Paid advertising expense, $4,850. 3. Purchased supplies on account, $2,100. 4. Billed customers for delivery services on account, $14,700. 5. Received cash from customers on account, $5,200. Check My Work Previous Next