Match each term with its related definition by entering the appropriate letter in the space provided. There should be only one definition per term (that is, there are more definitions than terms). Term Definition 1. Transaction 2. Separate Entity Assumption 3. Balance Sheet 4. Liabilities 5. Assets Liabilities + Stockholders' Equity 6. Current Assets 7. Notes Payable 8. Duality of Effects 9. Retained Earnings A. Economic resources to be used or turned into cash within one year. B. Reports assets, liabilities, and stockholders' equity. C. Decrease assets; increase liabilities and stockholders' equity. D. Increase assets; decrease liabilities and stockholders' equity. E. An exchange or event that has a direct and measurable financial effect. F. Accounts for a business separate from its owners. G. The principle that assets should be recorded at their original cost to the company. H. A standardized format used to accumulate data about each item reported on financial statements. I. The basic accounting equation. J. The idea that accounts can both increase and decrease. K. The account credited when money is borrowed from a bank using a promissory note. L. Cumulative earnings of a company that have not yet been distributed to the owners. M. Every transaction has at least two effects. N. Amounts presently owed by the business. 10. Debit Deliberate Speed Corporation (DSC) was incorporated as a private company. The company's accounts included the following at June 30: Accounts Payable Buildings Cash Common Stock Equipment $ 20,000 Land 100,000 Notes Payable (long-term) 36,000 Retained Earnings 180,000 Supplies 118,000 During the month of July, the company had the following activities: a. Issued 4,000 shares of common stock for $400,000 cash. b. Borrowed $100,000 cash from a local bank, payable in two years. c. Bought a building for $182,000; paid $82,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $200,000. e. Purchased supplies for $30,000 on account. Required: 1. Analyze transactions (a)-(e) to determine their effects on the accounting equation, similar to Exhibit 2.5. 2. Record the transaction effects determined in requirement 1 using a journal entry format. 3. Summarize the journal entry effects from requirement 2 using T-accounts. 4. Prepare a trial balance at July 31. 5. Prepare a classified balance sheet at July 31. 6. As of July 31, has the financing for DSC's investment in assets primarily come from liabilities or stockholders' equity? $200,000 2,000 259,000 7,000 Page 90