Zen began a new consulting firm on January

5. Following is a financial summary, including balances, for each of the company’s first five transactions (using the accounting equation form).

Identify the explanation from a through j that best describes each transaction 1 through 5.

a. The company purchased equipment for $8,000 cash.

b. The company received $40,000 cash from a bank loan.

c. The owner invested $1,000 cash in the business in exchange for its common stock.

d. The owner invested $40,000 cash in the business in exchange for its common stock.

e. The company purchased supplies for $3,000 by paying $2,000 cash and putting $1,000 on credit.

f. The company billed a customer $6,000 for services provided.

g. The company purchased equipment worth $8,000 on credit.

h. The company provided services for $1,000 cash.

i. The company sold supplies for $3,000 and received $2,000 cash and $1,000 on credit.

j. The company provided services for $6,000 cash.