Question

Question:The expanded accounting equation consists of assets, liabilities, common stock, dividends, revenues, and expenses. It can be used to reveal insights into changes in a company’s financial position.

Required

1. Form learning teamsof six (or more) members. Each team member must select one of the six components, and each team must have at least one expert on each component: (a) assets, (b) liabilities, (c) common stock, (d) dividends, (e) revenues, and ( f) expenses.

2. Form expert teamsof individuals who selected the same component in part 1. Expert teams are to draft a report that each expert will present to his or her learning team addressing the following:

b. Describe a transaction, with amounts, that increases its component.

3. Each expert should return to his/her learning team. In rotation, each member presents his/her expert team’s report to the learning team. Team discussion is encouraged.

Short answer

Answer

The transaction has been taken for investing capital, providing services, and purchasing equipment.

Step-by-step solution

Transaction

A transaction is a financial event that can be expressed in monetary terms. Every transaction affects at least two accounts.

Transactions to increase the component

a)Cash invested into the business amounting to $10,000.

b) Cash received for providing services amounting to $5,000.

c) Machine purchased on credit for $4,000.