by Here are simple problems on the accounting equation and adjusting entries in table format:
Problem 1: Accounting Equation
| Transaction | Assets ($) | = Liabilities ($) | + Equity ($) |
| Owner invests $10,000 in the business | +10,000 | +10,000 | |
| Purchased equipment for $5,000 (paid cash) | -5,000 | ||
| Bought inventory for $2,000 on credit | +2,000 | +2,000 | |
| Earned $4,000 in Revenue (cash) | +4,000 | +4,000 | |
| Paid $1,500 Salary expense | -1,500 | -1,500 |
Problem 2: Adjusting Entries
| Adjusting Entry Type | Debit | Credit |
| Prepaid Rent Expired | Rent Expense $1,000 | Prepaid Rent $1,000 |
| Accrued Salaries | Salaries Expense $2,000 | Salaries Payable $2,000 |
| Depreciation of Equipment | Depreciation Expense $500 | Accumulated Depreciation $500 |
| Unearned Revenue Earned | Unearned Revenue $3,000 | Service Revenue $3,000 |
| Accrued Interest Revenue | Interest Receivable $400 | Interest Revenue $400 |
These tables represent basic examples of how the accounting equation and adjusting entries operate in practice.
