Analysis of Transactions Eduardo Gomez, a recent graduate of a law school, was penniless on December 25, 20X3.

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1. On December 26, Gomez inherited an enormous sum of money. 2. On December 27, he placed $50,000 in a business checking account for his unincorporated law practice. 3. On December 28, he purchased a home for a down payment of $100,000 plus a home mortgage payable of $250,000. 4. On December 28, Gomez agreed to rent a law office. He provided a $1,000 cash damage deposit (from his business cash), which will be fully refundable when he vacates the premises. This deposit is a business asset. He will make rental payments in advance on the first business day of each month. (The first payment of $700 is not to be made until January 2, 20X4.) 5. On December 28, Gomez purchased a computer for his law practice for $2,000 cash, plus a $2,000 promissory note due in 90 days.