can someone explain in detail how problem #22 was answered

22. In January of year 1, a company began doing business as a corporation in order to sell technology-related accessories and services. During its first month of operations, the following events occurred: January 1 The corporation received $1,000,000 in cash in exchange for stock issued to stockholders. January 3 The corporation borrowed $250,000 from bank. The loan is a four-year loan with an interest rate of 12 percent, payable each year on January 1 beginning in year 2. January 5 The corporation purchased equipment to be used in the business for $200,000 cash. January 8 The corporation purchased inventory costing $200,000 by paying $120,000 in cash. The remainder was put on credit accounts with suppliers. January 15 month. The corporation hired five employees. Each employee will be paid $1,000 at the end of each January 30 The corporation paid $6,000 cash for a one-year insurance policy. The policy period will begin on February 1, year 1. What will be the impact of the January 5 event on the company's balance sheet on that date? Your Correct Answer Answer Equipment will increase $200,000, and cash will decrease $200,000. Cash will decrease $200,000, and paid-in-capital will decrease $200,000. $200,000. Equipment will increase $200,000, and retained earnings will decrease Cash will decrease $200,000, and loan payable will decrease $200,000