Galle Inc. entered into the following transactions during January.
a. Borrowed $50,000 from First Street Bank by signing a note payable.
b. Purchased $25,000 of equipment for cash.
c. Paid $500 to landlord for rent for January.
d. Performed services for customers on account, $10,000.
e. Collected $3,000 from customers for services performed in Transaction d.
f. Paid salaries of $2,500 for the current month.
Required:
Show the effect of each transaction using the following model.