An analysis of the transactions of Pruitt Detective Agency for the month of May appears below. Line 1 summarizes the company's accounting equation data as of May 1 ; lines 2-10 represent the transactions for May:

Required

a. Show that assets equal liabilities plus stockholders' equity as of May 1.

b. Describe the apparent transaction indicated by each line. (For example, line 2: Borrowed \(\$ 2,000\), giving a note payable.) If any line could reasonably represent more than one type of transaction, describe each type. Transaction (8) does not affect net income.

c. Show that assets equal liabilities plus stockholders' equity as of May 31 .

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Accounts Cash Receivable + Supplies + Equipment (1) $2,400 + $7,600 +$1,500 +$8,000 Accounts Notes Common Retained Payable Payable + Stock + Earnings (2) +2,000 (3) +6,100 -6,100 (4) +980 (5) +5,200 (6) -300 (7) +1,500 (8) -800 (9) -900 (10) -2,500 +900 $300 +$6,000 + $10,000 +$3,200 +2,000 +980 +5,200 -300 +1,500 -800 -2,500