To solve this problem, let's analyze the financial transaction described and its effects on Carl Cornfield's balance sheet.
1. Carl receives [tex]$1,750 for vegetables. This transaction increases the cash balance since this is a cash inflow.
2. The receipt for vegetables also affects Owner's Equity, specifically through an increase in revenue. Revenue increases Owner's Equity.
Given this, let's determine the changes step-by-step.
### Step-by-Step Solution:
1. Identify the initial cash balance and owner's equity:
- Initial cash balance: $[/tex]5,000
- Initial owner's equity (investment): [tex]$6,500
2. Determine the increase in cash and owner's equity:
- Cash increase: $[/tex]1,750
- Owner's equity increase due to revenue: [tex]$1,750
3. Calculate the new balances:
- New Cash Balance = Initial Cash Balance + Cash Increase
- New Cash Balance = $[/tex]5,000 + [tex]$1,750 = $[/tex]6,750
- New Owner's Equity = Initial Owner's Equity + Equity Increase
- New Owner's Equity = [tex]$6,500 + $[/tex]1,750 = [tex]$8,250
### Updated Balance Sheet Lines:
- Cash increases from $[/tex]5,000 to [tex]$6,750.
- Owner's Equity increases from $[/tex]6,500 to $8,250.
### Conclusion:
The two lines of the balance sheet that increase are:
1. Cash
2. Owner's Equity
Thus, the correct answers are:
- Cash
- Owner's Equity