Requirement 1. Determine the company's accounting equation, and label each element as a debit amount or a credit amount. If you use

$28,000

for the owner's equity, why is the accounting equation out of balance?

Complete the accounting equation below, and then below each element, select whether it is a debit or credit account. Finally, enter the amount for each element into the accounting equation, using

$28,000

for owner's equity. Note that the equation will not balance.

Walla Cottage Management Services

Unadjusted Trial Balance

March 31, 2019

Balance

Account Title

Debit

Credit

Cash

$23,765

Accounts receivable

4,700

Supplies

360

Land

10,500

Building

36,000

Accounts payable

$1,700

Note payable

44,600

Lionel Callahan, capital

28,000

Lionel Callahan, withdrawals

1,700

Service revenue

8,500

Interest expense

320

Rent expense

1,450

Salaries expense

3,800

Utilities expense

205

Total

$82,800

$82,800

	Assets	=	Liabilities	+	Owner's equity
	Debit	=	Credit	+	Credit
	75325	=	46300	+