Stever Heating acquired equipment costing $3,000 on account. The effect of this transaction on Stever Heating would be to: No transaction is recorded since no cash has been paid. increase equipment by $3,000 and decrease capital by $3,000 increase equipment by $3,000 and increase capital by $3,000 increase equipment by $3,000 and increase accounts payable by $3,000 increase equipment by $3,000 and decrease accounts payable by $3,000 From the following information, determine the ending balance in Retained Earnings. Beginning Retained Earnings $6, 200 Cash 1, 900 Accounts Payable 1, 100 Sales 27,000 Merchandise Inventory 9, 200 Cost of Goods Sold 14, 400 Salary Expense 9, 900 $20,000 $12, 700 $6, 200 $8, 900 $18, 900 The recording of expenses in the same time period as the related revenues are recognized is known as cost recovery matching recognition period costs realization arthing Company acquired a $40,000 machine on January 1, 20X4. The machine is estimated to have a useful life of 5 years, and a residual value of $4,000. For unit depreciation purposes, the machine is expected to produce 500,000 units. Referring to Table 8-2, if Farthing Company uses double-declining-balance depredation, what is the depreciation expense in 20X4? $27, 776 $17, 600 $16,000 $25,000 $14, 400 Referring to Table 8-2, if Farthing Company uses straight-line depredation, what is the balance in the accumulated depredation account on January 1, 20X6? $21, 600 $16,000 $14, 400 $24,000 $17, 600 What is the effect on a company's balance sheet equation when depredation expense is recognized? Total liabilities will increase and total stockholders' equity will decrease by the same amount. There will be no change in the total assets, liabilities, and stockholders' equity account. This transaction affects only the income statement, so no change on the balance sheet will occur. Total assets and total stockholders' equity will decrease by the same amount. Without knowing the exact dollar amount of depredation, the effect on the balance sheet cannot be determined