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

$27,500

Hi,

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

$27,500

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