9: Cash; Accounts Re- ceivable; Office Supplies; Office Equipment; Excavating Equipment; Accounts Payable; R. Truro, Capital; R. Truro, Withdrawals; Revenues; and Expenses.

2 . Use additions and subtractions to show the effects of each transaction on the accounts in the account- ing equation. Show new balances after each transaction.

3 . Use the increases and decreases in the columns of the table from part 2 to prepare an income state- ment, a statement of owner's equity, and a statement of cash flows-each of these for the current month. Also prepare a balance sheet as of the end of the month.

Analysis Component 4 .Assume that the $5,000 purchase of excavating equipment on July 3 was financed from an owner in¬ vestment of another $5,000 cash in the business (instead of the purchase conditions described in the transaction). Explain the effect of this change on total assets, total liabilities, and total equity