Answer:
The Accounting Equation is As follows:
Assets = Liabilities + Stockholder's Equity
Statement (a)
With the cash collected there will be increase in assets by $6,700
And with the recognition of revenue there will be increase in stockholder's equity as retained earnings will increase by the amount $6,700,
Assets increase $6,700 = Liabilities + Stockholder's equity increase $6,700.
Statement (b)
Revenue is recognized and with that retained earnings will increase, and accordingly stockholder's equity will also increase by $5,200,
As the cash is not realized now, accounts receivables increase and accordingly, assets increase by $5,200.
Statement (c)
Cash paid as wages will reduce cash and accordingly assets by $2,000,
Also , with the recognition of expense, retained earnings will reduce and accordingly stockholder's equity will reduce by $2,000.
Statement (d)
This will increase the cash and decrease the accounts receivable by $2,600.
Thus on the assets side there will be + $2,600 and - $2,600 making it neutral.
No effect on the right side, as net effect on left side of equation = 0
Statement (e)
Cash paid for cleaning expense will decrease assets by $940,
And also this will decrease retained earnings and accordingly stockholder's equity will decrease by $940.
