LO3 Compute the missing amounts in the following table: EXERCISE 2.5 Using the Accounting Equation a. Assets = Liabilities + Owners' Equity $578,000 $342,000 ? ? 562,500 $570,000 307,500 ? 187,200 b. c. L03 EXERCISE 2.6 The Accounting Equation a. c. e. A number of business transactions carried out by Smalling Manufacturing Company are as follows: Borrowed money from a bank. b. Sold land for cash at a price equal to its cost. Paid a liability d. Returned for credit some of the office equipment previously purchased on credit but not yet paid for. (Treat this the opposite of a transaction in which you purchased office equipment on credit.) Sold land for cash at a price in excess of cost. (Hint: The difference between cost and sales price represents a gain that will be in the company's income statement.) f. Purchased a computer on credit. g. The owner invested cash in the business. h. Purchased office equipment for cash. i. Collected an account receivable. Indicate the effects of each of these transactions on the total amounts of the company's assets, liabilities, and owners' equity. Organize your answer in tabular form, using the following column headings and the code letters I for increase, D for decrease, and NE for no effect. The answer for transaction a is provided as an example: Transaction Assets = Liabilities + Owners' Equity 1 1 NE (a) L03 EXERCISE 2.7 Effects of Business Transactions a. For each of the following categories, state concisely a transaction that will have the required effect on the elements of the accounting equation. Increase an asset and increase a liability. b. Decrease an asset and decrease a liability. c. Increase one asset and decrease another asset. d. Increase an asset and increase owners' equity. Increase one asset, decrease another asset, and increase a liability. e