Pandey Inc. had the following activities during the month:. A. Borrowed $890,000 cash, signing a promissory note.
B. Bought a building for $1,180,000, paying $260,000 in cash and signing a promissory note for $920,000.
C. Rented equipment at a cost of $29,000 per month and issued a check covering six months’ rent.
D. Provided $200,000 of services and billed customers.
E. Purchased $68,000 of supplies on account.
F. Received a utility bill for the current period in the amount of $5,000.
G. Raised sales prices on 200 units from $450 per unit to $630 per unit.
H. Received a 50% deposit from a customer on a $58,000 order to be filled next month.
Required:
Analyze each of the activities (A) through (H) above with the goal of indicating their effects on the basic accounting equation by completing the table below. Indicate the accounts and amounts involved. Include a plus (+) or minus (−) sign before each number to show its effect on the accounting equation. If the activity should not to be recorded as a transaction, enter the word "None" in the first column for that activity. ' EquityAccount(s)AmountAccount(s)Amo untAccount(s)AmountABCDEFGHWhat will be an ideal response?

Based on the analysis, the basic accounting equations holds as follows:

Total Assets = Total Liabilities + Total Shareholders' Equity => 2,078,000 = 1,912,000 + 166,000

Explanation:

Note: See the attached excel file for the horizontal analysis.

For event C: Advance payment for Equipment rentals = $29,000 * 5 months = $145,000

All the items under the shareholders’ fund are income statement items that will affect the retained earnings.

The additional note below the horizontal analysis in the excel file shows that accounting equations holds. That is;

Total Assets = Total Liabilities + Total Shareholders' Equity => 2,078,000 = 1,912,000 + 166,000

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.