The accounting equation is stated as assets equals liabilities plus owner's equity. Under the appropriate classification, a separate column is set up for each account. Transactions are recorded by listing amounts as additions to or deductions from the various accounts. The equation must remain in balance. Write the corresponding amounts for each transaction. Compute the balance to make sure the equation is in balance before proceeding to the next transaction. Use the minus sign to indicate a decrease or reduction in the account. If an amount box does not require an entry, leave it blank. Assets Liabilities + Owner's Equity Items Owned Amounts owed to creditors +Owner's Investment Cash (a) Assets Supplies 3,500- Liabilities Owner's Equity Accounts Payable + K. Nelson, Capital (b) 75,000 + 0+ Bal. 71,500 + 3,500 = 0+ 75,000 (c) + 0 = -5,600 + 0 Bal. 65,900 + 3,500- -5,600 + 75,000 (d) 0+ 0+ 7,000 Bal. 65.900+ 10,500- -5,600+ 82,000 (e) + 11,000+ Bal. 65.900 + 21,500- 5,400 + 82,000