Response to the following questions:
1. Provide an example of a transaction that affects
(a) only one element of the accounting equation,
(b) two elements of the accounting equation,
(c) three elements of the accounting equation.
2. Indicate whether the following error would cause the accounting equation to be out of balance and, if so, indicate how it would be out of balance. The payment of wages of $6,750 was recorded as a decrease in cash of $6,750 and a decrease in retained earnings (wages expense) of $6,570.