1. Received $50,000 from stockholders.

2. Purchased equipment for $75,000, paying $15,000 in cash and giving a note payable for the remainder.

3. Paid $3,000 rent for the month.

4. Recorded $12,500 of services provided on account.

5. Paid wages of $9,500.

6. Received $7,000 in cash for services provided.

7. Collected $2,000 from customers on account.

Instructions

Describe the effect of each transaction on the basic accounting equation. For example, the first answer is (1) Increase in assets $50,000 and increase in stockholders' equity $50,000.

Selected transactions for Myme Inc. one listed here.