. Analyze business transactions using the accounting equation. Jamie Bailey opened a hair salon and spa named "Brazwells at Bradford Inc." The following transactions occurred during its first month of business. Enter each transaction below into the accounting equation and identify an increase or decrease to assets, liabilities, shareholder's equity, revenues, or expenses. (LO 4)

1. Jamie contributed \(\$ 8,000\) of personal savings in exchange for stock, and the salon borrowed \(\$ 6,000\) from the bank to start the business.

2. The salon bought \(\$ 5,000\) of inventory from a manufacturer in the Caribbean.

3. Brazwells bought two salon chairs equipped with hair dryers at a cost of \(\$ 2,500\) each.

4. The salon paid rent expense of \(\$ 375\) the first month.

5. Brazwells earned service revenue of \(\$ 4,000\) and sold the entire \(\$ 5,000\) of inventory it had purchased to customers for \(\$ 7,500\) cash.

All the transactions were for cash. Use the following format:

Transcribed Image Text:

Shareholder's equity Total assets Total liabilities + Contributed + Retained capital earnings Transaction 1: