Cambridge Business Publishers Chapter 2 Processing Accounting Informa Common Retained Stock + Earnings $10,000 + $3,200 (2) (3) Accounts Accounts Notes Cash + Receivable + Supplies + Equipment = Payable + Payable + $2,400 + $7,600 + $1,500 + $8,000 = $300 + $6,000 + +2,000 +2,000 +6,100 -6,100 +980 +980 +5,200 -300 -300 +1,500 - 800 -900 +900 -2,500 -2,500 +5,200 +1,500 -800 (6) (7) (8) (9) (10) Required a. Show that assets equal liabilities plus stockholders' equity as of May 1. b. Describe the apparent transaction indicated by each line. (For example, line 2: Borrowed $2,000, giving a note payable.) If any line could reasonably represent more than one type of transaction, describe each type. Transaction (8) does not affect net income. c. Show that assets equal liabilities plus stockholders' equity as of May 31