50. Transaction 1: Investment by Owner Chuck Taylor invest $30,000 cash in FastForward 99 Taylor personally invests $30,000 cash in the new company and deposits the cash in a bank account opened under the name of FastForward. The accounts in this transaction are CASH (an asset) and C. Taylor, CAPITAL (owner's equity). Owner investments are always included under the title "Owner name," CAPITAL). Both accounts increase by $30,000 as a result of this transaction. After this transaction, FastForward's assets equal its equity, and the accounting equation is in balance. The effect of the transaction on FastForward is reflected in the accounting equation as follows: ASSETS = LIABILITIES + EQUITY (1) Transaction 2: Purchase Supplies for Cash FastForward pays $2500 cash for supplies. FastForward uses $2500 of its cash to buy supplies of brand name athletic footwear for performance testing over the next few months. This transaction is an exchange of CASH, an asset, for another kind of asset, SUPPLIES. ASSETS LIABILITIES + EQUITY Old Bal. (2) New Bal