TRANSACTION ANALYSIS AND THE ACCOUNTING MODEL. Amanda Webb opened a home health-care business under the name Home Care, Inc. During her first month of operations, the business had the following transactions:

a) Sold capital stock to Ms. Webb and other stockholders in exchange for $25,000 cash.

b) Paid $15,000 cash for a parcel of land on which the business will eventually build \

an office building.

c) Purchased supplies for $2,900 on credit.

d) Paid rent for the month on office space and equipment, $600 cash.

e) Performed services for clients in exchange for $3,400.

f) Paid salaries expense, $1,200.

g) Used $950 of supplies.

h) Paid $2,100 on account for supplies purchased on February 10.

i) Performed services for clients on credit in the amount of $770.

j) Paid a $500 dividend to stockholders.

REQUIRED:

Prepare an analysis of the effects of these transactions on the accounting equation of the business. Use a format similar to that in the “Summary of Transaction Analysis”

in Exhibit 1-3, with headings for Cash, Accounts Receivable, Supplies, Land, Accounts Payable, Capital Stock, and Retained Earnings. «