Sherman Lawn Service, Inc., began operations and completed the following transactions during August:

Aug 1 Received \($1,000\) and issued 100 shares of common stock. Deposited this amount in bank account titled Sherman Lawn Service, Inc.

3 Purchased on account a mower, \($1,000\), and weed whacker, \($400\). The equipment is expected to remain in service for four years.

5 Purchased \($20\) of gas. Wrote check #1 from the new bank account.

6 Performed lawn services for client on account, $200.

8 Purchased \($50\) of fertilizer from the lawn store. Wrote check #2 from the new bank account.

17 Completed landscaping job for client, received cash $500.

31 Received \($50\) on account from Aug 6 sale.

Requirement

1. Analyze the effects of Sherman Lawn Service transactions on the accounting equation. Include these headings: Cash, Accounts receivable, Lawn supplies, Equipment, Accounts payable, Common stock, and Retained earnings.