Brief Exercise 2-05 Skysong, Inc has the following transactions dering August of the current year Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis Aug. 1 Opens an office as a financial advisor, investing $4,100 in cash in exchange for common stock 4 Pays insurance in advance for 6 months. $1,850 cash. Receives 1,000 from dients for services performed 27 Pays secretary 51,600 salary 16 (a) Effect on Accounting Equation Increased (b) Debit Credit Analysis Aug 1 The set Debito Increase the stockholdersbeuty account Common Stock Increased C Det 4100 Credits Increase Stockholden Earty Credit Common Stock 4100 Aug 4 The Prepaid Insurance Debit Increase Arts Decreed 1650 Die Pre Insurance Credes Decrease 1