I would like you to notice the equation refers to assets, liabilities in plural not in the singular mode. Typically most business have a large number of assets as well as a large number of liabilities. Owners Equity ordinarily represents amounts invested by the owners and the cumulative retained profits (generally referred to as Retained Earnings). If the business has had profitable operations retained earnings will have a credit balance, thus increasing owners equity and if the business has had unprofitable operations, the retained earnings will have a negative balance which reduces the total owners equity. Using the Accounting Equation show individually how the following events for Main Street Business Inc. would affect and be reflected in the accounting equation: Owners invest $10, 000 cash Business borrowed $ 5, 000 cash Business acquired the following items(show the effect of each transaction as an independent event): Furniture $2000 (cash); Office supplies for use in the office bought on credit, $1, 500; company provided a services and billed customers for$5, 500 for which they were paid $2, 200 cash, the balance was collected within ten days and the customers got a 10% discount. The cost of those services was $2, 850 consisting of wages payment $1, 500 and $1350 depreciation expenses