Below are external transactions for Shockers Incorporated. Prepare the journal entries and explain what happens to the accounting equation.

1. Issue common stock in exchange for $400,000 cash.

2. Purchased equipment for $23,000 by signing a note payable.

3. Provided $10,000 services to customers on account.

4. Paid $2,500 rent for the month.

5. Paid $800 insurance for the month.

6. Collected $8,000 from customers on account.